Phonepe limits cashback per account per financi...

Phonepe limits cashback per account per financial year to INR 9999

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Deal Subedar
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https://www.phonepe.com/en/ter...ml
A user can earn up to maximum INR 9999 cashback per financial year (i.e. 1 April to 31 March) across all offers disbursed on Phonepe.

Outstanding amount allowed in the Phonepe wallet at any point of time not to exceed INR 100000

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https://cdn0.desidime.com/attachments/photos/549636/original/IMG_20190127_105154.jpg?1548566531

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Happy that I maintain proper accounts of all such transactions.

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panchabhut wrote:

Happy that I maintain proper accounts of all such transactions.

It will be interesting to see if other wallets follow phonepe.
As pan becomes mandatory from March, they will track every cashback.

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B4TM4N wrote:

It will be interesting to see if other wallets follow phonepe.
As pan becomes mandatory from March, they will track every cashback.

Yes. And there will be reporting requirements on the wallets. So the IT dept would also know how much cashback you are earning. Unless the wallets switch to upfront discount, there will be problems

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panchabhut wrote:

Yes. And there will be reporting requirements on the wallets. So the IT dept would also know how much cashback you are earning. Unless the wallets switch to upfront discount, there will be problems

is it true that if total cashback of all wallets crosses 50k per year then IT department can send notice to us?
I read some article …

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Deal Lieutenant
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I had already earned 22000 cashback from one phonepay account only through coolwinks since April 2018

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aam_aadmi wrote:

I had already earned 22000 cashback from one phonepay account only through coolwinks since April 2018

What did u do with so much glasses?

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Deal Lieutenant
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Guru_bhai wrote:

What did u do with so much glasses?

Donated/gifted to all relatives, friends, colleagues, housemaid etc

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aam_aadmi wrote:

I had already earned 22000 cashback from one phonepay account only through coolwinks since April 2018

I guess you need to change this habit from next financial year,
else never know IT department send special gift to you smile

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B4TM4N wrote:

I guess you need to change this habit from next financial year,
else never know IT department send special gift to you smile

i m salaried, all income white only. nothing to fear from income tax deptt, if your source of income is clean

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aam_aadmi wrote:

i m salaried, all income white only. nothing to fear from income tax deptt, if your source of income is clean

Oh.. then we are on same path.
I was worried about this.
Thanks for clearing my doubt…

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aam_aadmi wrote:

i m salaried, all income white only. nothing to fear from income tax deptt, if your source of income is clean

the moment your total cashback from all sources cross 50k, they will ask you to declare it in your return and pay tax on the whole amount.

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panchabhut wrote:

the moment your total cashback from all sources cross 50k, they will ask you to declare it in your return and pay tax on the whole amount.

I thought if it is white money then we don’t need to pay anything.This is alarming. Websites like coolwinks selling 250 rs stuff for 1700 and giving 1500 in return as cashback

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panchabhut wrote:

the moment your total cashback from all sources cross 50k, they will ask you to declare it in your return and pay tax on the whole amount.

For paying taxes it is not necessary for income from other sources to be more than 50000. If your grosd income frm salary is taxable, you are liable to pay tax on any other income (any amount).

However cashback is not defined as an income under it rules. You can very well consider that the net price you paid for the product is after deducting any cashback. By that logic cashback is not income, you are just paying a lesser price wherein instead of discount, you’re getting cashback.

By your logic even discounts should also be considered as income, liable for taxes.

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panchabhut wrote:

the moment your total cashback from all sources cross 50k, they will ask you to declare it in your return and pay tax on the whole amount.

For paying taxes it is not necessary for income from other sources to be more than 50000. If your gross income frm salary is taxable, you are liable to pay tax on any other income (any amount).

However cashback is not defined as an income under IT rules. You can very well consider that the net price you paid for the product is after deducting any cashback. By that logic cashback is not income, you are just paying a lesser price wherein instead of discount, you’re getting cashback.

By your logic even discounts should also be considered as income, liable for taxes.

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aam_aadmi wrote:

For paying taxes it is not necessary for income from other sources to be more than 50000. If your gross income frm salary is taxable, you are liable to pay tax on any other income (any amount).

However cashback is not defined as an income under IT rules. You can very well consider that the net price you paid for the product is after deducting any cashback. By that logic cashback is not income, you are just paying a lesser price wherein instead of discount, you’re getting cashback.

By your logic even discounts should also be considered as income, liable for taxes.

I did not refer to income from other sources. I specifically referred to aggregate cashback from all sources.
Direct discounts are treated as Trade discounts which are directly deducted from the invoice and not subjected to Tax. However, cashbacks are treated as receipts without consideration (gift) and taxed under Section 56(2)(x) of the Income-tax Act. Gifts upto aggregate of Rs.50,000 per year is exempt. Beyond that, full amount becomes taxable.

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panchabhut wrote:

the moment your total cashback from all sources cross 50k, they will ask you to declare it in your return and pay tax on the whole amount.

If total cashback from all sources is below 50000, for example it is 25000, then is it mandatory to declare in ITR ?

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