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Gold jewellery tax treatment

vishnupriya (CA Final) (1418 Points)

21 April 2010

What will be the tax treatment in case of individual, if he/she is presented with gold ornament by their employer? Is the entire worth is taxable/

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8 Replies

Amir (Learner) (4016 Points)
Replied 21 April 2010

Dear Vishnu,

Gifts from employers are taxable under head salary as perquisites.....vauation should exceed Rs. 5,000 for aggregate of gifts made in a FY.

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@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 21 April 2010

GIFT RECEIVED FROM EMPLOYER IS EXEMPT FROM TAX .... AND THE EXEMPTION LIMIT IS RS 5000 ABOVE FIVE THOUSAND IT IS TAXABLE................

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Mohit Jangid (Article) (141 Points)
Replied 22 April 2010

amir bhai, if the value of gift is 6,000. Then perquisite will be valued as 6,000. Please correct me if i am wrong.

vishnupriya (CA Final) (1418 Points)
Replied 22 April 2010

I think the excess amount above 5000 is taxable

Amir (Learner) (4016 Points)
Replied 22 April 2010

Dear Mohit and Vishnu,

There is no clarity as such that in this case amount in excess should be taxable or entire amount should be taxable.

But to tax entire 6,000 appears more appropriate. I have checkd most of the authors are of this opinion further as an assessee one wiould not like to take chances for this petty amount....

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MONICA (CA) (29 Points)
Replied 22 April 2010

I WUD LIKE TO CORRECT ,GIFT IN EXCESS OF 5000 WILL ONLY BE TAXABLE.

LIKE,FOR ABOVE EXAMPLE 1000 WILL B TAXABLE NOT 6000 BUT IF GIFT IN CASH DEN COMPLETE AMOUNT WUD B TAXABLE

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Rajendra Nath Datta (0) (101 Points)
Replied 22 April 2010

When worth of gift is in excess of Rs 5000 then amt in excess of Rs 5000 shall be taxable. so in the above question Rs (6000-5000)=Rs 1000 is taxable.

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