Regular credit card reward points used as purchase discounts are not taxable. But if you turn these rewards into cash or statement credits, you might have to deal with taxes. According to Parashar, reward points exceeding Rs 50,000 in value annually, or those materially monetised, should be reported as ‘Income from Other Sources’ or at least disclosed, particularly when arising from third-party spending.

Source: Economic Times January 08, 2026 12:04 UTC