Taxability of Gift Vouuchers

Hi All,

I would like to know, if a company has given gift vouchers to employees amounting to 40K will it be taxable in the hands of employees as perquisites. What are the related provision? Please provide me the relevant provisions, notification, circulars,etc. . Also, if company has paid for vouchers less than its value to the dealer(bulk discount), what will the value to be taken as taxable in the hands of employees i.e. voucher value or discounted value that co. has paid to dealer?

 

Please advice....

Replies (7)

 

Voucher will be taxable at the rate of given to employees or any amount recover from employee towards voucher than it have to be minus from the voucher recd amount and rest will be taxable. Upto 5,000.00 is exempt from tax.

Agree with  Mr pankaj

thanks,

 

but tell me if the gift voucher value is Rs 40,000, then taxable value to be taken will be Rs 40000 or Rs 35,000 only??

You have to take it Rs.40000.00

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