Taxability of goods

The relevant question comes under the head salary . When an employer  gives to his employee any gift, voucher, the following consequences take place -

 If the aggregate value of such gift in kind (not in cash) in previous year exceed Rs 5000, then it is taxable in the hands of employee. If it is below Rs 5000 then not taxable. It should be noted that gift made in cash is taxable irrespective of any amount.

If gift received in Cash - Fully Taxable

If in kind - Taxable if the value is above Rs.5000/-

Personal Expenses are cannot be claimed under section 10

hi Dinesh

Gifts has been answered.

For exemption of perquisites do not look for section 10 but look Rule 3 of income tax rules.

If telephone facility is provided by the employer even for personal purpose then not taxable.

If telephone bill is re0imbursed for personal purpose then taxable.

Thanks

Kaushal

https://taxbykk.blogspot.com/