17 October 2013
In calculation of gift voucher -upto 5000 is exempted then if it exceeds 5000 that difference amount is taxable or the whole amount is taxable? example-if the amount is 6000 ,1000 is taxable or 6000 is taxable?
17 October 2013
Circular No 15 dataed 12. 12. 2001 says " Gift , voucher or token in lieu of gift - It is customary in India , as it is in other parts of the world, to provide presents directly or indirectly in the form of vouchers or tokens to employees on social and religious occasions like Diwali, Christmas, New Year , the anniversary of the organization etc. Such gifts upto Rs . 5, 000 in the aggregate per annum would be exempt , beyond which it would be taxed as a perquisite . However , gifts made in cash or convertible into cash , like gift cheques etc. do not fall in the purview of this sub- rule ." So amount exceeding 5000 is taxable except cash gift which is fully taxable.
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