Cash gift to employee less then 5000

This query is : Resolved

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

12 October 2015 Dear experts,
Weather cash gift to employee less then 5000, is taxable or not,

Regard
Pallavi Gupta

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

12 October 2015 If the aggregate value of gift received by the employee from employer, during the previous year, does not exceeds Rs. 5,000/- then such Gift is not taxable in the hands of employee. If gift received during the previous year exceeds Rs. 5,000, then whole amount of gift received will be chargeable to tax.

Refer Rule 3 of Income tax Rules.