Is cashback taxable? For example SBI cashback card gave some person 60k cashback in a year .. do we need to pay income tax on that ?

Yes

Even if you receive 100 rs cashback and your income comes under taxable slab you pay tax on this

@third.i.financial.advisors

Don't worry its very hard to track the cashbacks.

IT department don't have enough resources to track the ITR yet, and we are talking about cashbacks here.

• If your spends is genuine & you are filling ITR more than your spends then no need to worry.
• Even if your spends is not genuine and you are still filling ITR then its fine as well, due to lack of resources
  
• But if you're not filling ITR more than the card spends and your card spends is reflected in AIS, then its a red alert for you.

Technically total CB/gifts from all sources in excess of 50K is taxable. Even redemption of points for cash/cash equivalents come under this. Direct discount is better that way and is totally not taxable.

However, as of now, this is outside the IT radar and is not part of the AIS Reporting system. But how long it would remain so is anyone's guess.

So make hay while the sun shines. 

 As per rules , the tax has to be paid on any income. In the real world, its peanuts , and cant be tracked by dept. 

Tax on cashback must be the dumbest rule ever! We spend a lot and get a little bit back so we have to pay tax on it. No capital was invested, no services were provided, so it is not really an income. 

Cashback are similar to discounts. Imagine paying tax on discounts. A jeans MRP is 4000 but it is available at 75% off so you are saving 3000 now pay 30% tax to govt from those savings of 3000.

upto 50k cashback is tax exempted, above that you need to declare as income i guess i have read somewhere ;_; 

On any form of income you are liable to pay income tax. Cashbacks don't appear in AIS. So whether you declare it voluntarily in your ITR or not, is a different matter. But, there is a record of your cashback income, unlike doctors/lawyers/busnesmen who transact in cash.

Show it as merchant refund

I think no... Unsure....

Show the cashback or rewards as other income in ITR and pay the tax. It's better i think so

Afaik, we don't need to pay taxes on any sort of cashback. It is treated as a discount given for our purchases.

One can call it a deferred discount instead of an upfront discount.

Don't tell me order refunds are taxable.

Please don't make such threads. If any IT guys are snooping around, they will unnecessarily get ideas .. And government won't miss any taxation opportunity and harrasment of small income tax payers in the name of socialism (this is irrespective of political party as ultimately it's the bureaucrats who run the show).

It is taxable as it is income. But most tax payers ignore.

I don't think cb can be considered income. It is out already tax paid money used to buy a product or service. We are getting a little back after the fact. It can only be considered as discount. 

It is not a gift since we are not receiving it without any stipulations.