Tds on staff welfare

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2015 Hi,

We have Purchase Cloths and Some Gift items for employee, its a cost of Rs more than 1 Lakh, there is any TDS applicable ? if applicable How much i want to deduct ?

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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14 October 2015 nah.. no tds will apply on that its a staff welfare expense

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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14 October 2015 No TDS applicable on purchase of cloths and gifts.

Taxability in the hands of employee:

Refer rule 3 of Income Tax Rules:

The value of any gift, or voucher, or token in lieu of which such gift may be received by the employee or by member of his household on ceremonial occasions or otherwise from the employer shall be determined as the sum equal to the amount of such gift:
Provided that where the value of such gift, voucher or token, as the case may be, is below five thousand rupees in the aggregate during the previous year, the value of perquisite shall be taken as “nil”

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