Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Taxability of Gifts

Trex Gaming_67 (243 Points)

06 October 2019

if an employer gifts his employee on his wedding Rs.1,00,000. Is it exempt upto Rs.5000 or is it completely exempt?

Reply
Follow
Share

3 Replies

Kapadia Pravin (17259 Points)
Replied 06 October 2019

Gift given on wedding by non-relative that is employer is fully exempt.

Upgrade to CAclubindia Pro. Subscribe Now!

sundhar jkn (205 Points)
Replied 06 October 2019

Gift in the occasion of marriage is fully exempt irrespective of relative or non relative

Suresh Thiyagarajan (Student) (3986 Points)
Replied 11 October 2019

1. Generally, any amount received as gift from an employer, if the monetary value of the gift exceeds Rs. 50,000 then the entire value of gift will be taxable as gift u/s 56(2)(x).
2. However, an exemption was provided where such gifts are received on occasion of the marriage of the individual.
3. In your case, Rs. 1 lakh gift was on occasion of marriage hence it will not be taxable in the hands of the employee.
Please correct me if the above solution has an alternative view.