Gifting of leaves

Gift is considered under the Head income from Other Sources.

There would be no implication on the part of the company and the employee earning such leaves.

It would be considered as employee cost for the company and IFS for the employee

Originally posted by : H.2017 R
	For donee this helps in avoiding loss of pay...any impact on personal taxation...

No Donee can't from his loss of pay on account of earned leaves transferred to other employee since it would be considered as part of his salary and same will also be shown in his form 16 .

Originally posted by : H.2017 R
	Could not understand. The purpose of leave gifting is to help other employees who are in need and exhausted their leave. Say medical reason. Those having surplus leave can donate to the needy one so that the beneficiary avoids loss of pay. This is as per company policy.. Hope I made clear

Yes I understand Your concern but remember but donating all your salary you cant avoid your tax

Similarly the transfer of earned leaves is taxable in your hand as IFS and IFOS in the hand of reciver of Leave by way of GIFT unless an untill it is non monetary perk( even if you would have claimed the same it would have not been paid in encashed).