New Delhi. It is a tradition to give gifts to your near and dear ones on the occasion of Diwali. The value of a gift often depends on the depth of the relationship. Companies also give gifts to their employees on the occasion of Diwali. But do you know that these gifts and bonuses can put an extra burden on your pocket? Yes, you may have to pay tax on these under Income Tax Rules. Gifts and bonuses received from the company not only bring happiness but also tax liability.
As per income tax rules, if the value of your Diwali gift exceeds a certain limit or if your bonus is above certain limits, you may have to pay tax on it. This means that this Diwali gift can bring happiness for you, but it can also add tax burden.
When is gift tax levied: Under Section 56(2)(x) of the Income Tax Act 1961, the taxpayer is liable to tax on gifts received. However, not all gifts received by an individual in India are subject to tax. Key provisions of the Income Tax Act, 1962 allow you to receive various tax-free gifts. If you have received a gift up to Rs 50,000 in a financial year, then no gift tax will have to be paid on it. Income tax on gifts is not levied on any single gift, rather it is levied on the total gifts received in a financial year. Gifts received from these people are not taxed. Gifts received from husband or wife, brother or sister and other close relatives are not taxed. guess not.
Property received as a gift through inheritance or will. Gift received from any member in case of Hindu Undivided Family. Gift received from Panchayat, Municipality, any foundation, university, religious institution and educational institution. Gift received from a company. When is tax payable? Free? Gifts received by a working person from his company up to Rs 5,000 in a financial year are tax free, but if this value exceeds Rs 5,000 then the additional amount will be considered as income from your salary and income tax will be payable on it. will be
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