Breaking news:- Diwali gift or bonus taxed? Know is the rule what..!
Counting days are now left for Diwali. Diwali is at the end of this month. Along with this, people also give gifts to their relatives, relatives, relatives and friends. Along with Dussehra, the distribution of Diwali gifts also begins. Various kinds of gifts are distributed in this. Companies give gifts to their employees.
Be it a gift or a bonus or a gift of money, its tax rules are very important to know. Companies also give bonuses to their employees on this occasion . If you are going to receive any gift or bonus , or have received it, then it is very important for you to know its tax related rules.
There are tax rules on monetary gifts. But this year there is also a provision for some special tax exemptions. A special definition of gift has been given in the income tax guidelines. Gift means any amount of money received, certain movable assets, special movable properties received at a low price..
immovable properties received without any consideration and immovable property received at a low price are classified as gifts. If a financial gift is received from your close relative i.e., gift in rupees and money then no tax is charged on it. If the gift is received from spouse, brother, sister, parents or other family members, no tax is charged on it.
In case of HUF, money received as gift from someone on the occasion of marriage, money received by inheritance, money received after death of donor, money received from local authority, fund received from any fund, foundation, university, medical institution, money received from merger or de-merger of company. I don’t think so.
experts on Diwali gifts , you may have to pay tax on the price of Diwali gifts. Archit Gupta says if a gift or voucher of less than Rs 5,000 is received in a financial year. So no tax is levied on it. If you receive a gift or voucher worth more than Rs.5,000. Then this amount will be added to your salary and taxed as per your tax slab.
For example, suppose you are gifted on Diwali Rs. 5,000, then on Christmas Rs. 3,000 is received. Thus you have to pay tax on Rs 3,000. Bonus money is added to the employee’s salary. Some companies give bonuses to their employees on Diwali. Bonus money is fully taxable. It is considered a part of salary itself. Then tax is charged as per tax slab.