Salary & Capital Gains

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CA Kapil Popat (Querist)

14 April 2010 A Company gives gold coins of different grams to its employees of sales & marketing dept. as an incentive for the year. What will be its taxing effect? Will it be considered as salary or under which head will it fall as what and what value will be adopted? Then suppose after sometime if the employees sell these coins in future what will its tax impact on them? Will they be considered as sale of capital asset? Why? What will be considered as cost of acquisition?

Please guide me I am confused

Regards,

Kapil

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)

14 April 2010 IT'S INCLUDES IN SALARY AS GIFT,
GIFT EXEMPT UP TO 5000/- PA UNDER PERQ.

FOR CALCULATION OF CAPITAL GAIN COST OF PURCHASE = TAXABLE VALUE IN THE SALARY HEAD AND DATE = TIME OF RECEIPT OF GIFT

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

14 April 2010 AGREE WITH VIEWS OF ASHOK JI

CA Kapil Popat

CA Kapil Popat (Querist)

14 April 2010 thanks Ashok Sir,
but I have written that gold coins are given as an incentive for achieving sales targets can they be considered as a gift given to employees???

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)

15 April 2010 IN MY OPINION BECAUSE OF OTHER THEN CASH WE TREAT AS GIFT,

OTHERWISE ADD FULL VALUE IN SALARY INCOME.

OTHER EXPERTS OPINION IS SOLICITED

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