Need Advice: Refund from Hotel and Tax Implications

[atom008]

TL;DR:
During my trip to Malaysia, a hotel overcharged me 50 MYR (~1000 INR) for a lost room key when the card mentioned only 20 MYR. Despite multiple discussions, the manager later agreed to refund 30 MYR but insisted on needing my bank details for the refund. I’m concerned about tax implications if the refund is processed to my bank account and need advice on handling this situation.


Details:

1. Upon check-in, I was given a room upgrade due to the poor condition of the original room. Later that night (around 2 AM), I lost the room key, and the receptionist charged me 50 MYR for a replacement. I tried to negotiate but didn’t push much since it was late, and I had already received an upgrade.
2. The next morning, I noticed the key card mentioned a charge of only 20 MYR for a lost key. I politely raised this with a different receptionist, but they claimed the charge was 50 MYR, citing a new policy. Since I needed to leave my luggage at the hotel for the day, I didn’t escalate the issue further at that time.
3. That evening, after collecting my luggage, I raised the issue again with a third receptionist. I showed him the key card as proof (showing the 20 MYR charge) and mentioned reporting this to Agoda and filing a chargeback with Visa. They escalated the issue to the manager.
4. Shortly after, I received a call from the manager, who agreed to refund 30 MYR. However, I had already left the hotel, and they asked for my bank details to process the refund.

My Concerns:

• I initially paid via card, so I requested the refund be processed back to the same card. They insisted on needing my bank details.
• If they refund directly to my bank account, what are the tax implications for this transaction when I file my returns?

I’d appreciate any advice on how to handle this situation and whether I should provide my bank details for the refund.

 

[msankadi]

No implication even if you multiply it by 1000... you're vastly over thinking..

 

[atom008]

Thanks for reply.

No implication even if you multiply it by 1000... you're vastly over thinking..

I may have not conveyed my complete concern earlier. The reason I was worried is that I wasn’t sure if receiving a refund from a foreign bank account would require me to file a more complicated tax return. I generally handle my ITR filing on my own, so I wanted to avoid any unexpected complications.

 

[msankadi]

Thanks for reply.

I may have not conveyed my complete concern earlier. The reason I was worried is that I wasn’t sure if receiving a refund from a foreign bank account would require me to file a more complicated tax return. I generally handle my ITR filing on my own, so I wanted to avoid any unexpected complications.

Okay that I am not sure as typically foreign bank remittance is more complicated and regulated... So someone who is more knowledgeable in that aspect can hopefully help you

 

[sbrewingcompany]

When requesting a refund from a hotel, make sure to first check the hotel’s refund policy, as some may offer partial or full refunds depending on the situation. Contact their customer service directly, providing booking details, and explain why you are seeking the refund.

Regarding tax implications, refunds typically do not have a direct impact on your taxes unless the amount was previously deducted or reported as an expense. If the hotel was business-related, ensure the refund is properly reflected in your expense records. Always consult a tax professional for specific advice based on your situation.