Gift to employee's child

llllVICTORllll (Internal Auditor) (511 Points)

30 August 2012  

Hi

 

My Question is in Two Parts from different perspective

Scenerio: Company has given cash prize to employee's Child for securing good marks in exam, amounting to Rs. 4000

 

1. Can this expense be booked as business expenditure for the company? if yes then why and how(under which head)?

2. Being income to minor Child of the employee, and clubbing provision attracted, should company deduct TDS on income of minor child, from employee?