New Delhi, April 23 -- As the income tax return (ITR) filing season for the financial year 2026 approaches, you may be wondering how credit card rewards, cashback and airline miles are taxed in India. These benefits are widely used but are not explicitly covered under the Income-tax Act, 1961 or the latest framework.

These are non-cash credits earned through spending on a credit card or a loyalty programme. They accumulate over time and can be redeemed for vouchers, merchandise, discounts or converted into other benefits, such as travel bookings.

In most cases, experts say such rewards are treated as discounts rather than income, especially when earned through regular spending. However, grey areas remain, particularly for high-value rew...