Menu
Gift for completing Sales target
if I give a gift to a customer which can be if RS 1lac or RS 50000/- for completing my sales target what will be the tax implications on me or the customer
Replies (2)
No implications on you. You may debit to P&L as Sales promotion expenses .
For customer it will be a gift and upto 50000/- it is exempt. However if it is 1 lakh then entire amount of 1 lakh is taxable under section 56 being deemed income from other sources.
For customer it will be a gift and upto 50000/- it is exempt. However if it is 1 lakh then entire amount of 1 lakh is taxable under section 56 being deemed income from other sources.
1. Any type of gift will be taxable u/s 56(2)(x) with few exceptions based on the relationship of the two parties.
2. If the monetary value of the gift exceeds Rs. 50,000 will be taxable in the hands of the recipient under the head Income from Other Sources.
3. The same will be considered as Sales promotion expenses and it will be allowed as a deduction in your P&L account.
4. If the value of the gift exceeds Rs. 50,000 entire gift will be taxable or else it will not be taxable.
Please correct me if the above solution has an alternative view.
Recent Topics :
- TDS filing for the 1st quarter of TY 2026-27
- Login into Old Traces Portal
- Professional Income reporting in ITR-3
- Pf exemption in hand of spouse on demised of husba
- Missed deadline to revise ITR for a foreign asset
- Durga Puja 2026 Dates: Mahalaya, Shashthi to Vijay
- Indo-MIM IPO Allotment Date, Status Check and List
- GSTR 1 filed but GSTR 3 B no filed
- ITR FORM FILING REGARDS
- TDS JUSTIFICATION REPORT
Related Topics :
CAclubindia
