Cash gift to employee less then 5000

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 October 2015 Dear experts,
Weather cash given to employee on diwali less then 5000 is taxable or not...

Plz confirm....

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 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.

Querist : Anonymous

Querist : Anonymous (Querist)

23 October 2015 Sir, this is cash given as gift

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CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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23 October 2015 No .... Such amount is not taxable in the hands of Employee too.

Since it does not comes under the definition of perquisite given under section 17 read with the rule 3 of Income tax rules.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 October 2015 It covers cash gift also.