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New Cashback SBI card launched!

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pjain2712

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Wealth is my birth right! said:
Adding this for a general info, discussions can be done with good intention:

The total cashback earned on the credit card is also taxable if the amount on all your cards is equal to or greater than ₹50K as per Section 56(2)(x) of the Income-tax Act. You need to report it under the head ‘Income from Other Sources’ or ‘Profits and Gains from Business or Profession’, as the case may be.

Much impact for ppl who are already in 30% IT slab.
As per my enquiry with a CA even though we show it in IT filing SBI have all rights to send our PAN with our claimed CB to IT dept later date.
Click to expand...
But cashback is for the expense we make right?
How can this be treated as a income?
 
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Interesting👍..wondering how reward points and miles earned should be treated then? Same as cashback ? How are discounts any different or how are they not technically speaking cashbacks? A ₹100 item with 5% cashback or ₹100 item offered at 5% discount
 
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Pujaari said:
Interesting👍..wondering how reward points and miles earned should be treated then? Same as cashback ? How are discounts any different or how are they not technically speaking cashbacks? A ₹100 item with 5% cashback or ₹100 item offered at 5% discount
Click to expand...
IT rules as of now pointing out cash backs only.
Rewards/airmiles are in loopholes till then we enjoy the party
 
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Pujaari said:
Interesting👍..wondering how reward points and miles earned should be treated then? Same as cashback ? How are discounts any different or how are they not technically speaking cashbacks? A ₹100 item with 5% cashback or ₹100 item offered at 5% discount
Click to expand...

Disclaimer: I am not a CA. This is based on what I've read
a) A discount does not attract tax. 100% sure
b) Also, reward points/miles as opposed to direct cashback will not attract tax. 95% sure.
c) Direct cashbacks in terms of cash paid into bank/CC accounts attract tax once the 50K gift tax threshold is breached. 100% sure
d) Direct cashbacks in terms of voucher balances (e..g Amazon Pay) should not attract tax as the said balance technically is only exchangeable for goods and cannot be converted to cash. 50% sure. I've been trying to find documentation for this to differentiate it from (c)
 
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Copycat said:
Disclaimer: I am not a CA. This is based on what I've read
a) A discount does not attract tax. 100% sure
b) Also, reward points/miles as opposed to direct cashback will not attract tax. 95% sure.
c) Direct cashbacks in terms of cash paid into bank/CC accounts attract tax. 100% sure
d) Direct cashbacks in terms voucher balances (e..g Amazon Pay) should not attract tax. 50% sure. I've been trying to find documentation for this to differentiate it from (c)
Click to expand...
yes point c is the hot topic.
as we know many of us in SBI CB card spend 2 lac (own rotational spends haha) and get 10k easily so better to think of doing it only 5 times in a FY
just my thoughts
 
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I had applied on 12th nov evening and on 14th An agent had visited home for KYC. After completing the KYC after 30 Min my card got approved without any income proof and yet to dispatch.
 
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Wealth is my birth right! said:
Adding this for a general info, discussions can be done with good intention:

The total cashback earned on the credit card is also taxable if the amount on all your cards is equal to or greater than ₹50K as per Section 56(2)(x) of the Income-tax Act. You need to report it under the head ‘Income from Other Sources’ or ‘Profits and Gains from Business or Profession’, as the case may be.

Much impact for ppl who are already in 30% IT slab.
As per my enquiry with a CA even though we show it in IT filing SBI have all rights to send our PAN with our claimed CB to IT dept later date.
Click to expand...
Government want tax on everything.. I red in news sometime back that they were levying dog tax if you hv pet dog 🐶 at home..
 
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Pujaari said:
Interesting👍..wondering how reward points and miles earned should be treated then? Same as cashback ? How are discounts any different or how are they not technically speaking cashbacks? A ₹100 item with 5% cashback or ₹100 item offered at 5% discount
Click to expand...
Pay 30% airmiles to IT, so the officers can use it for vacation trip 🤣.. Eventually cards may start levying tds on cashback also 🤣
 
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I was going through some recent posts in this thread.

1668518770816.png

Is this true that in E-commerce sales like this, where 10% instant discount is applicable on SBI Credit cards, SBI cashback Credit card gets you only 5% cashback instead of 10% instant discount + 5% cashback . (Just like Amazon pay ICICI card gives only 5% cb on Amazon Sale days with ICICI offer ).
This is a crucial deciding factor for getting this costly paid credit card for me.
 
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