Gifts to Employees
This query is : Resolved
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04 March 2021
hello, in my proprietorship business (services) to some employees I allow to get stuff from Fashion, Apparel, etc. websites basically as gifts for their good performance. Payments are made directly from Current Account and bill with app/website is in business name.
Is that considered as business expense and can be shown that way? please help.
Is that considered as business expense and can be shown that way? please help.
05 March 2021
It will be considered as business expenses.
Gifts from an employer to employee is taxable as perquisites if their value is more than Rs 5,000. The Rs 5,000 limit is for an entire financial year.
Gifts from an employer to employee is taxable as perquisites if their value is more than Rs 5,000. The Rs 5,000 limit is for an entire financial year.
05 March 2021
Thanks sir for reply, but lets suppose if I order on behalf of them (e.g. clothes) and give them as gift, still it's INR 5000 per employee? Is that limit only for cash gifts? Is there any legal work around for this? Because that limit is too less. Does this limit also includes any gold coin, etc,?
And what's the limit, for gifting to vendors/resellers/associates? on occasions like Diwali, new year, etc.
And what's the limit, for gifting to vendors/resellers/associates? on occasions like Diwali, new year, etc.
05 March 2021
5000 limit include all cash and gold coins. No legal work required. Reasonable gift may be given as sale promotion to vendors etc.
05 March 2021
but sir there is no limit for gift to vendors etc., right?
05 March 2021
Yes, you are right but should be reasonable.
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