whether gift =prize for perks

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vipin (Querist)
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29 December 2009 please tell me if a co. provides prizes to employee silver trophy 25000.00 each, whether 25000-5000=20000 will be added to income as a perquisite or not.
prizes is in recognition of completing 25 years of services in co.
please! please! tell me with reason if possible.

Bhavesh

Bhavesh (Expert)
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29 December 2009 May qualify as profit in lieu or in addition to salary.

But if the prizes are given for winning some competition, then it will be taxable as other sources but beacuse of the limit of Rs. 25,000 may escape the tax net.