Cash award to employees of PSU

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Tomy jose (Querist)
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13 January 2010 I am working in Kerala state Electricity Board, a PSU run by Kerala Government. Recently a cash award of Rs. 2500 was given to some employees for their meritorious service in their work. Is this taxable as per prevailing income tax rules? Thanks in advance

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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13 January 2010 as there exist a employee-employer relationship, the same is taxable in hands of employees as salary

Rahul Vora

Rahul Vora (Expert)
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14 January 2010 it will be taxable as salary

sivasankar

sivasankar (Expert)
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16 January 2010 Any payment received by employer unless it is exempted by the act will be taxable.Only a list of rewards and awards are exempted.Your reward is not covered by the list.