Gift

Gift from employer will be treated as perquisite u/s 17(2). This will apply even at the time of marriage.

It will be taxed under perquisite if employer employee relationship applies. Else, it will be taxed under income from other sources if recived from employer in any other capacity.

hello,

Gift to employee by an employer is taxable under the head of “Salary” if its value exceeds Rs 5000 during the financial year. Under this provision of gift of any kind is taxable under the head income from salary including voucher & token.  Value of gift in excess of Rs 5000 will be treated as perquisite & taxable in the hands of employee.

While deducting TDS from employee’s salary the employer need to consider the excess amount as part of salary. If its value is less than or equal to Rs 5000 then such amount will not taxable.

Provision of section 56(2) related to gift will not be applicable to employee if such gift are received from the employer.

welcome ......:)