Taxability of Gifts
This query is : Resolved
06 October 2009
If a corporate wants to honour its long serving employees and decides to either give them a cash award of Rs 40K per person or some travel package or gold bar equivalent to Rs 40k, what will this be treated as in the hands of the employee? What about the corporate?
chetan soni
(Expert)
06 October 2009
gift above 5K will be taxable in the hands of employees as salary.
If the gift is for FY 2009-10 then there will be FBT implications, the same is for FY 2008-09 then company needs to pay the FBT on it.
If the gift is for FY 2009-10 then there will be FBT implications, the same is for FY 2008-09 then company needs to pay the FBT on it.
CA SANJAY MUKHERJEE
(Expert)
06 October 2009
This is taxable in the hands of the employees as perquisite irrespective of forms in which they are offered ( Cash/Travel Package /Gold bar.
Expenses will be allowed in the hands of corporate as business expenditure.Till 2008-09 corporate paid FBT now there is no FBT.
Expenses will be allowed in the hands of corporate as business expenditure.Till 2008-09 corporate paid FBT now there is no FBT.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Capital Gail Exemption Certificate
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Taxation of crypto futures in India Fy 2026- 2027
- MSME disclosure and disallowance
- Issuing of delivery challan by seller of goods
- Accounting treatment of AMC alongwith the purchase of Laptop
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
