Tax on Gift

This query is : Resolved

jaytilak mohanty (Querist)
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19 July 2011 Sir
The company announces gift schemes for Sales Representatives and Team Leaders for promotion of sales. the gift includes Microwave, Home theater, Grinder etc. please help me that if there is any tax liability on the hands of recipients or the company should deduct TDS on gift amounts.

Thanks

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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19 July 2011 Gift in kind is exempt up to Rs. 5000/ in aggregate.

Beyond Rs 5000/ it is taxable.

Employee has to deduct TDS on the amount exceeding Rs 5000/- under Section 192.