Purchase of Sweet Box for Diwali

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.