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Cash gift from employer ---> is it a perk ?

Mugundan (Live your Passion) (249 Points)

19 May 2013

If the employer has provided the Gift to employee by way of gift, then it is a Perquisite and if it exceeds 5000 then whole amount will be taken for taxation..

In case, if the employer provided gift by way of Cash, then wihat is the tax treatment. What is the limit for the amount that to be treated as Perquistie.?

regards,

Mukund

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CA SUDIPTA SINHA (Commerce Coaching- Accounts Cost FM) (735 Points)
Replied 19 May 2013

as per Rule 3 on valuation of perquisite

"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"."

therefore, cash gift or gift cheques are also taxable as perquisites. however upto 5,000 it would be exempt and beyond that it will be taxable.