Business Standard

Don't let this festival season get taxing for you

Gifts from distant relatives, friends and valued more than Rs 50,000 are taxable; from employers, the limit is Rs 5,000

Don't let this festival season get taxing for you
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Tinesh Bhasin
If you have a generous employer like Savji Dholakia, the Surat-based billionaire diamond merchant famous for gifting flats and cars to his employees on Diwali, it could get taxing while filing returns next year. Employees need to pay tax on any gifts received from an employer that has a market value of over Rs  5,000.

“Such gifts are added to income from other sources. The employer deducts tax at source based on the applicable tax slab and deposits it with the income tax department. If the value of the house is Rs  50 lakh, the receiver needs to pay Rs  15

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