sekar (student) (42 Points)
18 March 2010Value of gift or voucher or token, other than gifts made in cash or convertible into money on ceremonial occassion or otherwise given by the employer to the employee upto Rs.5000 is not a taxable perquisite. suppose the value of perquisite exceeds Rs.5000 (for example it the value of perquisite is Rs.7500), will the whole 7500 be taxable or only the amount in excess of Rs.5000?
CA Shiv
(Business Controller)
(2987 Points)
Replied 18 March 2010
On whole amount.......and not in excesss...
Can you elaborate the question please....
Muthu
(Assisstant Manager)
(54 Points)
Replied 19 March 2010
1. Gifts made in cash or convertible to money is not exempt
2. Gifts upto Rs.5,000/- in aggregate per annum would be exempt, beyond which it would be taxable (Refer notification no. 94/2009 dated 18th Dec'09)
Amount exceeding Rs.5,000 in aggregate during the previous year is taxable
Rajat Singhal CA,CS,CFA
(Senior Manager (F&A))
(254 Points)
Replied 20 March 2010
Dear sekar,
In this case the gift value exceeding 5000 aggregate in the year is taxable.
The fair market value of the gift would be taken as the value of perquisite for this purpose.
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