treatment of golden bat recd by schain tendulkar

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Manish Mehta (Querist)
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18 April 2009 What will be treatment of golden bat recd by schain tendulkar as per income tax from the view point of company and receiving person?

Please mail the answer on manish.mehta@ambujacement.com

Deepak Goel

Deepak Goel (Expert)
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19 April 2009 It will be treated as a Gift in kind and there is no tax on Gift in kind. So, therefore, relex and enjoy gift.

Manish Mehta

Manish Mehta (Querist)
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20 April 2009 but it was golden bat so i think it will be taxable because there no relationship between to both the party. it will taxable under

Gift exceeding Rs 50,000 is taxable unless it is received from

1        any person who is a relative or

2        on occasion of marriage or

3        under will or by inheritance or

in contemplation of death of the payer

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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02 August 2025 Here’s a clear treatment of the **Golden Bat received by Sachin Tendulkar** from an Income Tax perspective, both for **Sachin Tendulkar (recipient)** and the **company (giver)**:

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### 1. **For Sachin Tendulkar (Recipient):**

* **Nature of Receipt:**
The Golden Bat is a **gift in kind** (a valuable tangible item).

* **Taxability under Income Tax Act (Section 56(2)):**
Gifts received by an individual exceeding **Rs. 50,000** in aggregate during a financial year are taxable as **“Income from Other Sources”** unless they fall under specified exemptions, such as:

* Gifts from relatives,
* Gifts on the occasion of marriage,
* Gifts by will or inheritance, or
* Gifts from a local authority or specified fund/trust.

* **Is the Golden Bat taxable for Sachin?**

* If the Golden Bat is received **from a company or unrelated party**, it is taxable as income from other sources, since the value likely exceeds Rs. 50,000.
* The **fair market value** of the Golden Bat would be considered as income.
* Therefore, Sachin Tendulkar should **include the value of the Golden Bat under ‘Income from Other Sources’** and pay tax accordingly.

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### 2. **For the Company (Giver):**

* **Treatment for the Company:**
The cost of giving the Golden Bat would generally be treated as a **business expense** if it is given as a promotional item, award, or incentive.

* **Deductibility:**

* If the gift is given for business purposes (e.g., brand promotion or award), the company can **claim the expense as a deductible business expense** under section 37(1), subject to reasonable limits.
* However, the **amount paid as gift should be reasonable** and supported by documentation.

* **Tax deduction on the gift:**

* If the gift is for a person other than an employee, the gift cost is deductible as a business expense.
* If the gift is a personal gift (not related to business), it may not be deductible.

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### 3. **Summary:**

| Party | Tax Treatment |
| ---------------- | -------------------------------------------------------------- |
| Sachin Tendulkar | Taxable under "Income from Other Sources" if value > Rs.50,000 |
| Company | Deductible business expense if given for business purpose |

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If you want, I can draft a concise tax note or letter explaining this for your client or company records.

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