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Gift in kind to employee

jinal mehta (Asso accounts manager) (212 Points)

21 June 2016

Dear Experts, If i want to give gift card to employees that is 5000 in kind. What options to give such cards we can opt, i mean how to give this amount to employee

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Shishir Nayak ((Expert)) (369 Points)
Replied 22 June 2016

Giver-- the Company generally claims such expenditure as business promotion expenses eligible for deduction against its income and in the case of employees, generally, the Company claims the same it as employee welfare expenses :::::::::::::::: Receiver:-- Such gifts up to Rs. 5,000 in the aggregate per financial year would be tax exempt in the hands of the employees. The excess value of gift over and above Rs. 5000/- would be taxed as a perquisite in the hands of the employees. It is advisable to maintain documentary evidence in respect of the gifts received, so that any dispute with tax authorities can be avoided during the assessment process. Enjoy your gifts, but with a pinch of carefulness!