LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Gift

Sanaa...Tulip... (student) (186 Points)

27 February 2015

gift from employer what should b its treatment in income tax

Reply
Follow
Share

6 Replies

Raphael (Chartered Accountant) (214 Points)
Replied 27 February 2015

Gift from employer will be treated as perquisite u/s 17(2). This will apply even at the time of marriage.

Sanaa...Tulip... (student) (186 Points)
Replied 27 February 2015

OK so gift shall b taxable u/s 17(2) as perquisite if there is employer employee relationship then any gift whether In d form of movable immovable property or in cash ....m I right !!

Raphael (Chartered Accountant) (214 Points)
Replied 27 February 2015

It will be taxed under perquisite if employer employee relationship applies. Else, it will be taxed under income from other sources if recived from employer in any other capacity.

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 28 February 2015

hello,

Gift to employee by an employer is taxable under the head of “Salary” if its value exceeds Rs 5000 during the financial year. Under this provision of gift of any kind is taxable under the head income from salary including voucher & token. Value of gift in excess of Rs 5000 will be treated as perquisite & taxable in the hands of employee.

While deducting TDS from employee’s salary the employer need to consider the excess amount as part of salary. If its value is less than or equal to Rs 5000 then such amount will not taxable.

Provision of section 56(2) related to gift will not be applicable to employee if such gift are received from the employer.