13 September 2013
As per Rule 3 on valuation of perquisite
"The value of any gift, or voucher, or token in lieu of which such gift may be received by the employee or by member of his household on ceremonial occasions or otherwise from the employer shall be determined as the sum equal to the amount of such gift"
Provided that where the value of such gift, voucher or token, as the case may be, is below five thousand rupees in the aggregate during the previous year, the value of perquisite shall be taken as "nil".
therefore, cash gift or gift cheques are also taxable as perquisites. however upto 5,000 it would be exempt and beyond that it will be taxable.
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