Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Gift of ra 10,00,000.00

260 views

Save Share

Love Wadhwa

B.Com

46 Points Posted on 22 July 2020

hello, i am working in a partnership firm,
if the firm pay Rs 1000000.00 to his or her employee as gift, what is income tax or tds liability of the firm and as well the employee.
please advice.

Replies (6)

Quick Summary

This discussion clarifies the tax implications of a partnership firm gifting an employee Rs 10,00,000.00. While gifts up to Rs 50,000 are generally exempt, the excess amount of Rs 9,50,000 is taxable. The employee will need to declare this as income under the 'Salary' head, with the firm able to claim it as a business expense.

Sarthak Kumar Dash

Student

232 Points Posted on 23 July 2020

Rs. 50,000.00 is exempt but balance amount of Rs. 9,50,000.00 will be taxable under the head "income from other sources" (slab rate applicable) while filing your return.

Love Wadhwa

B.Com

46 Points Posted on 23 July 2020

Thanks, Please also advice about the firm (Giver) tax laibility.

Sarthak Kumar Dash

Student

232 Points Posted on 23 July 2020

Actually as you (employee) are receiving gift from the firm, the whole amount will be taxable under the head salary and will be treated as your salary income. The firm can claim such amount as salary expense.
Sorry i didn't read your query carefully. Sorry!!