Gift allowance taxability in the hands of employee (Income tax)
This query is : Resolved
Quick Summary
suman guduru
(Querist)
10 May 2024
Hi All,
Some companies are providing wallet services like sodexo,zaggle etc in which some components are carved out from employee salary and offering as allowances on monthly basis to save tax for employees.
One such component is Gift.
If gift is given by employer for performance over and above CTC then it can be tax exempt upto 5000.
But if 5000 is carved out from CTC of employee and paid on monthly basis(5000/12) by employer,i dont think it is tax exempt as it is part of CTC of employee and IT department may say that this is tax evasion.
Please clarify
Some companies are providing wallet services like sodexo,zaggle etc in which some components are carved out from employee salary and offering as allowances on monthly basis to save tax for employees.
One such component is Gift.
If gift is given by employer for performance over and above CTC then it can be tax exempt upto 5000.
But if 5000 is carved out from CTC of employee and paid on monthly basis(5000/12) by employer,i dont think it is tax exempt as it is part of CTC of employee and IT department may say that this is tax evasion.
Please clarify
Dhirajlal Rambhia
(Expert)
11 May 2024
Need to check form 16. Unless it is proved to be part of CTC, it remains tax exempt.
Dhirajlal Rambhia
(Expert)
07 September 2024
Good Luck.
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