Gift in kind to employee

Giver-- the Company generally claims such expenditure as business promotion expenses eligible for deduction against its income and in the case of employees, generally, the Company claims the same it as employee welfare expenses :::::::::::::::: Receiver:-- Such gifts up to Rs. 5,000 in the aggregate per financial year would be tax exempt in the hands of the employees. The excess value of gift over and above Rs. 5000/- would be taxed as a perquisite in the hands of the employees. It is advisable to maintain documentary evidence in respect of the gifts received, so that any dispute with tax authorities can be avoided during the assessment process. Enjoy your gifts, but with a pinch of carefulness!

Staff welfare