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Gift to employee can get deduction in pgbp?

19 February 2019

sir,If employer gives a gift worth of 15000rs to his employee, in this case can the employer gets deduction u/s37 for 15000rs under the head of PGBP?

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8 Replies

Rakesh Bandal (Self Employed and Agriculture) (1349 Points)
Replied 19 February 2019

Expenses allowed as employee welfare

Narendra Varma (30 Points)
Replied 19 February 2019

sit,if the gift is on the occation of marriage(ex;55000rs by cheque)of employee,can both the employer and employee can get deduction?

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 19 February 2019

gifts received on occasion of marriage are exempt. employer can get deduction

Narendra Varma (30 Points)
Replied 19 February 2019

thank you , if in the above case the reality is the employer does not give any gift to employee but the employee taken exemption for gift recived fot saving tax to the employer then employee taken as deduction for the amount ......how to know is the gift transaction is really done?

RAJA P M ("Do the Right Thing...!!!") (127133 Points)
Replied 19 February 2019

(employer does not give any gift)

Then no way for claim as expenditure.

SHIVANI KUDTARKAR (511 Points)
Replied 19 February 2019

employer can not claim deduction as gift recd by employee is not to be considered as income...one's expenditure, others income

Narendra Varma (30 Points)
Replied 19 February 2019

1.employee gives a gift rs70000(cheque) to his employee on his marriage.
-employer taken as deduction
-employee taken exemption
after that the gift was returned to his employee....than what is the treatment for this situation?