Neutral impactEconomy
Do you pay tax on credit card cashback, referral bonus or old phone sale? Explained
Mint 1 hr ago·16 Sept 2026, 6:02 am
If you earn cashback, referral bonuses, or profit from selling an old phone, you might wonder if the taxman is watching. Generally, the tax rules depend on the nature of the income. Cashback and referral bonuses are often treated as 'other income' and added to your total taxable income, potentially pushing you into a higher tax bracket. However, the profit from selling personal assets like a used phone is usually not taxed, provided it is a genuine personal transaction.
This distinction matters for investors as it clarifies how various small earnings are reported. While a single transaction might not trigger a tax notice, the cumulative effect of such incomes across the year can impact your overall tax liability. It is important to keep records of these transactions to ensure accurate filing.
Moving forward, investors should review their total income sources to understand their tax position. Consulting a tax professional can help navigate these specific rules and ensure compliance with current regulations.
Excerpt from Mint
Credit card cashbacks, referral bonus or proceeds from selling an old phone online may all put money or benefits in your hands but the tax rules differ. Here's all you need to know. Cashback earned through a credit card transaction, money earned by referring a friend to a fintech app, or proceeds from selling an old…Read the original at Mint
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