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Tax Query

Parmod Agarwal (Assistant Manager) (394 Points)

25 January 2010  

Dear All,

Our Company provides the Kanyadan Amount on the Marriage of Daughter of

the employee  as one month  Basic salary as a Gift  through Cash Voucher.

Whether it is taxable or not in the hand of employee?

Thanks

Parmod


 12 Replies

Sorabh Gupta (Manager ( Taxation )) (877 Points)
Replied 25 January 2010

Dear Mr. Pramod

Yes it will be taxable in the hands of employee........As he recd the gift from other than relatives & then he recd such gift for his daughter's marriage but the exempt in case of his/her marriage............

But one thing i would like to tell you that, if employee want to avoid tax then he can do so by not showing any gift ................

Hope u have no doubts.........

Sunil Liladhar Kotak (Manager (F & A)) (2025 Points)
Replied 25 January 2010

Sir,

Pls find the extract from new Perquisite rules which says gift in kind above Rs. 5,000/- will be taxable(which means the whole amount will be taxable.)

(iv) The value of any gift, or voucher, or token in lieu of which such gift may be received by the employee or by member of his household on ceremonial occasions or otherwise from the employer shall be determined as the sum equal to the amount of such gift:
 
Provided that where the value of such gift, voucher or token, as the case may be, is below five thousand rupees in the aggregate during the previous year, the value of perquisite shall be taken as nil.
 
sunil

Shudhanshu Agrawal (Business) (2570 Points)
Replied 25 January 2010

Originally posted by : Parmod Agarwal
Dear All,
Our Company provides the Kanyadan Amount on the Marriage of Daughter of
the employee  as one month  Basic salary as a Gift  through Cash Voucher.
Whether it is taxable or not in the hand of employee?
Thanks
Parmod

As per Section 56(vi) if amount received (except his/her marrige) as gift is less than 50,000 then it will be exempted but more than 50,000 full amount will be taxable.
 

But in case of hi/her own marrige full amount will be exempted.

Correct me if i am wrong.

Naresh (CA Final/ C.W.A Final) (49 Points)
Replied 25 January 2010

ya Shudhanshu........u r correct

Atal Gurnani (Manager- Finance) (28 Points)
Replied 25 January 2010

Originally posted by : Shudhanshu



Originally posted by : Parmod Agarwal



Dear All,
Our Company provides the Kanyadan Amount on the Marriage of Daughter of
the employee  as one month  Basic salary as a Gift  through Cash Voucher.
Whether it is taxable or not in the hand of employee?
Thanks
Parmod




As per Section 56(vi) if amount received (except his/her marrige) as gift is less than 50,000 then it will be exempted but more than 50,000 full amount will be taxable.
 
But in case of hi/her own marrige full amount will be exempted.
Correct me if i am wrong.


 

No sudhanshu you are Incorrect, It is not taxabel under other sources but it is taxable as perquisite. So it is taxable in the hands of employee

 

Shudhanshu Agrawal (Business) (2570 Points)
Replied 25 January 2010

Originally posted by : Atal Gurnani



Originally posted by : Shudhanshu






Originally posted by : Parmod Agarwal



Dear All,
Our Company provides the Kanyadan Amount on the Marriage of Daughter of
the employee  as one month  Basic salary as a Gift  through Cash Voucher.
Whether it is taxable or not in the hand of employee?
Thanks
Parmod




As per Section 56(vi) if amount received (except his/her marrige) as gift is less than 50,000 then it will be exempted but more than 50,000 full amount will be taxable.
 
But in case of hi/her own marrige full amount will be exempted.
Correct me if i am wrong.





 
No sudhanshu you are Incorrect, It is not taxabel under other sources but it is taxable as perquisite. So it is taxable in the hands of employee
 

Dear Ankur,
 

Gifts are not debited to salary account but they are debited to staff welfare and if there is a receipt from staff welfare then how can u take it as perquisite??? If u will treat it as perquisite than TDS u/s 192 will also be applicable. So for me it should not be treated as perquisite.

Amir (Learner) (4011 Points)
Replied 25 January 2010

Dear Pramod,

If the amount of gift is received by

1) Employee (i:e Father) - It will be taxable as Salary..Since Gifts in cash to employees are taxable as perks..

2) Daughter - It will not be taxable since the amount is received on the ocassion of marriage..

If u have any further doubts then plz reply.....

Kashyap Joshi (Proprietor ) (260 Points)
Replied 25 January 2010

If u want to avoid tax in case of employee, let the company show it as gift given to the person who is getting married.

Shudhanshu Agrawal (Business) (2570 Points)
Replied 25 January 2010

Originally posted by : Kashyap Joshi
If u want to avoid tax in case of employee, let the company show it as gift given to the person who is getting married.


 

Thats what i am saying, no employee wants to get a gift with tax liability when he can get it without tax liability.

RADHIKA JALAN (agarwal) (1521 Points)
Replied 25 January 2010

shudhanshu is correct.........................

CA LOVELY ARORA (C.A. B.Com (H) Graduate)   (2141 Points)
Replied 25 January 2010

 it is exempt.......... in this case.......... as it is gift received on occassion of marriage............

CA.Sangam Aggarwal (Professional) (520 Points)
Replied 26 January 2010

yes, u can, but it happens very rear.

 


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