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Purchase of Sweet Box for Diwali

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sridhar chandran

10 Points Posted on 01 October 2025

Hi Experts,

Whether the purchase of customized Diwali sweet box for employees by the employer is taxed at the hands of employee as "Gift under perquisite Tax" . The value per sweet box is Rs.7000

Replies (3)

Quick Summary

This discussion clarifies the tax implications of employers providing customised Diwali sweet boxes to employees in India. Gifts from employers are tax-exempt up to Rs. 5,000 per financial year. If the value of the sweet box exceeds this limit, the entire amount is considered taxable as a 'Gift under Perquisite Tax' for the employee, irrespective of whether the gift is customised.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212521 Points Posted on 02 October 2025

Gifts from employers to employees (including customized gifts) are exempt up to Rs. 5,000 per financial year. If the sum exceeds this limit, the whole amount is taxable as a "Gift under Perquisite Tax" as per Indian Income Tax law., regardless of customization.