I agree with you but here it would be difficult to categorise the reward point due to some factor. For example, we only come to know about reward point when we get bill/statement for specific period and expenses may be for personal nature as well business expenditure. Therefore, difficulties will arise at the time of reducing particular expenses pertaining to the reward.
Hence, in my opinion it may be treated as other income. Since reward should not be correlated to rebate/discount.
11 October 2009
You should give suggestion to your client that he should have two seperate debit cards or credit cards and he should use one for his business and the other for personal. Now almost all banks give free of cost. He need not be taxed unnecesarily due the fact that we were unable to take the data due to time consuming.
CAclubindia
