Govind (Doctor) (6 Points)
12 February 2022I am a professional and run my work from home. I have appointed 2 employees to help me. Can I claim tax deduction on gift vouchers that I have given to my employees on festival and other occassions under buisness expenses ? If yes, then is there some limit for the same ?
Yugandhar
(CA)
(123 Points)
Replied 12 February 2022
Gift received from the employer is taxable in the hands of the employee as perquisite under salary head.
If you are getting income as professional income, you can deduct the gift expenditure from the income.
If you are getting your income as salary, you cannot deduct the gift expenses from the income.
Govind
(Doctor)
(6 Points)
Replied 12 February 2022
I receive income as professional income. Is there a limit on gift amount that can be given to employee ? I mean calculations based upon their salary or something ?
Yugandhar
(CA)
(123 Points)
Replied 12 February 2022
There are no such restrictions.
But there are restrictions if you pay to specified persons u/s 40A(2) (Example: Relatives, Partners, Directors)
Refer to the section for details
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
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