Query reg taxation on cashback via Credit Cards

38°

2024-12-03

Got the below email from AMEX today and would like to know/is there any info whether in future Cashback on Credit cards are taxable? (which I am sure is not as of today) as its indirectly a source of income I believe just like how you work, pay taxes and in the remaining money say you buy a product or put FD and the interest earned on it is again a source of income and taxed (in case of product its taxed indirectly via GST)

Any contest won in Amazon (which is a mere 10 or 20Rs these days as Daily quiz itself is only Rs 50 prize money) is flat 30% taxed but currently those info are not shared to IT but going forward when Credit Card companies are asked to share all the details then soon any source of income like Amazon contest or CRED cashback might come in AIS and we may need to pay taxes I believe -- all this seems to scare folks not to use online methods or Cards and indirectly making us feel that it will be better to visit the offline shop and pay in cash as offline tracking would be a challenge for the IT dept 😌

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What you should know

As per the RBI circular* regarding submission of credit/financial information to Credit Information Companies (CICs), being a scheduled commercial bank, American Express Banking Corp. India (AEBC) is legally obligated to submit credit/financial information about all their customers.

In alignment with this directive, starting 01 January 2025, credit/financial information for all American Express^® Customers, will be reported regularly on a fortnightly basis (i.e., on “cycle/billing date” and “cycle/billing date + 15 days”) to the CICs.

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