Good Morning !!
Can anyone confirm the limit of Gift Vouchers can be claimed by an employee in a financial year. As i could see multiple definitions while googling it. Have attached both the versions for your reference. As we have been extending exemptions to employee's up to 5K and say if the amount is 10K balance 5K is taxable as per his slab. As in one of the attachment it shows that the if the value exceeds 5K entire 10K is taxable. Hence, i have requested for views.
From India, Madras
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Can anyone confirm the limit of Gift Vouchers can be claimed by an employee in a financial year. As i could see multiple definitions while googling it. Have attached both the versions for your reference. As we have been extending exemptions to employee's up to 5K and say if the amount is 10K balance 5K is taxable as per his slab. As in one of the attachment it shows that the if the value exceeds 5K entire 10K is taxable. Hence, i have requested for views.
From India, Madras
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The tax treatment of gift vouchers in India is governed by the Income Tax Act. According to the Act, any gift received by an employee that exceeds INR 5,000 in a financial year is taxable. This means that if an employee receives a gift voucher of INR 10,000, the entire amount becomes taxable, not just the excess over INR 5,000.
However, there are some exceptions to this rule. For instance, gifts received from relatives or on the occasion of marriage are not taxable. Also, gifts received by way of will or inheritance are exempt from tax.
It's important to note that the tax treatment can vary depending on the specific circumstances of each case. Therefore, it's recommended to consult with a tax advisor or the company's finance department to ensure accurate tax calculations.
Remember, tax laws can change from year to year, so it's crucial to stay updated with the latest information. You can refer to the official website of the Income Tax Department of India for the most accurate and up-to-date information.
From India, Gurugram
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130However, there are some exceptions to this rule. For instance, gifts received from relatives or on the occasion of marriage are not taxable. Also, gifts received by way of will or inheritance are exempt from tax.
It's important to note that the tax treatment can vary depending on the specific circumstances of each case. Therefore, it's recommended to consult with a tax advisor or the company's finance department to ensure accurate tax calculations.
Remember, tax laws can change from year to year, so it's crucial to stay updated with the latest information. You can refer to the official website of the Income Tax Department of India for the most accurate and up-to-date information.
From India, Gurugram
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Dear Balaji R,
There is no such Acts and Rules under which Gift Vouchers can be claimed by an employee.
Further, any monetary gifts and vouchers are treated/ consider as financial gain and part of income.
As per Income Tax Act, gifts from an employer to an employee are taxable as a perquisite if their aggregate value in a financial year exceeds ₹5,000.
From India, Mumbai
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There is no such Acts and Rules under which Gift Vouchers can be claimed by an employee.
Further, any monetary gifts and vouchers are treated/ consider as financial gain and part of income.
As per Income Tax Act, gifts from an employer to an employee are taxable as a perquisite if their aggregate value in a financial year exceeds ₹5,000.
From India, Mumbai
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BALAJI R
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(Fact Checked)-Your understanding is correct. Gifts above ₹5,000 are taxable as perquisites under the Income Tax Act. Keep contributing! (1 Acknowledge point)