Incentives pay in other mode of payment

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A company is offering gifts or vouchers as an alternative to sales incentives for employees. This raises questions about whether these payments are subject to TDS (Tax Deducted at Source) and under which section. Gifts up to £5,000 per year are generally exempt from TDS. However, if the value exceeds this limit, TDS will be applicable under the salary head.

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(Querist)
30 October 2020 One Company is giving gifts or gifts voucher or any mode of payment instead off paying sale incentive to employees.

Whether this payment attracts tds deduction liability ? Further, under which section tds liability arises ? Can you give me reply for the same ?

Thanks in advance....
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
30 October 2020 Such gifts upto 5000 in a year is exempt. TDS applicable under salary head of it exceeds exemption limit.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
30 October 2020 Such gifts upto 5000 in a year is exempt. TDS applicable under salary head of it exceeds exemption limit.
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