Getting cashbacks for online transactions? You may be liable to pay tax

They are treated as gifts now; could be taxed if value exceeds Rs 50,000 in a year

Almost all payment apps and wallets nowadays offer cashbacks or cash rewards. When you transact on some of them via the Unified Payments Interface (UPI), the cash reward is transferred directly to your bank account. At times, there are offers from an e-commerce website in partnership with credit card issuers, where the cashback is added to the account after a few months. 

However, too many of these rewards can become taxable. For individuals, cash rewards could be taxable as gift tax. "Provisions of Section 56(2)(x) of the Income-Tax Act talk about money received without consideration, also known as gift tax. If