Hi guys i wanted to know wether Gift vouchers given to employees by the employer are taxable in the hands of employee and whether 2) an employee can claim u/s 10 for the telephone expenses paid for personal use.
Please answer this questions urgently
thank you
The relevant question comes under the head salary . When an employer gives to his employee any gift, voucher, the following consequences take place -
If the aggregate value of such gift in kind (not in cash) in previous year exceed Rs 5000, then it is taxable in the hands of employee. If it is below Rs 5000 then not taxable. It should be noted that gift made in cash is taxable irrespective of any amount.
If gift received in Cash - Fully Taxable
If in kind - Taxable if the value is above Rs.5000/-
Personal Expenses are cannot be claimed under section 10
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