Obtained Diwali Reward Or Bonus From Workplace? Discover Out If You Want To Pay Tax For It

Received Diwali Gift Or Bonus From Office? Find Out If You Need To Pay Tax For It

New Delhi: Diwali, the competition of lights, is an event the place you trade money or items with your loved ones and mates and unfold constructive vibes to your family members. However, have you ever ever considered these items from an revenue tax perspective? The items you obtain could not at all times be tax-free. You could be required to pay taxes on a few of them.Additionally Learn – Alia Bhatt To Katrina Kaif: Bollywood’s Main Divas Who Aced Health Sport In 2021 | Checkout Video

Though the Reward Tax Act was abolished in 1998, all items you obtain throughout Diwali or another competition will not be tax exempt. Not solely do it’s important to declare all items whereas submitting your revenue tax return (ITR), you may additionally need to shell out revenue tax on items in response to your tax slab. Additionally Learn – Here is The right way to Construct Your Immunity The Proper Manner This Winter Season

Diwali present or Diwali bonus from employer: Additionally Learn – Karnataka Imposes Night time Curfew for 10 Days; Recent Curbs, Restrictions for New Yr Events Come Into Power From Dec 28

For those who obtain any present voucher or token value greater than Rs. 5,000 out of your employer on any ceremonial event like Diwali or New Yr, then it’s handled as a part of your wage and taxed in response to your tax slab.

The tax exemption is restricted to present vouchers or tokens totalling lower than Rs. 5,000 in any given monetary yr. Subsequently, should you obtain two vouchers totalling greater than ₹ 5,000 throughout a monetary yr then you may be taxed.

Nonetheless, There isn’t any tax exemption on money given as a present by an employer. Mistry factors out that even should you get ₹ 2,000 money out of your employer, it’s taxable as revenue from wage.

To Be Famous: The Rs 5,000 restrict is for a whole monetary yr, so the overall worth of all items and bonuses in any given yr must be beneath Rs 5,000 for it to stay tax-free.

Presents from relatives- Exemptions, Tax implications

Presents amounting as much as fifty thousand, obtained from sure kin is excluded. Kin for the aim of such exclusion embody partner, brothers, and sisters of the receiver himself. It additionally consists of brothers and sisters of the partner. Relative right here additional consists of all of the individuals who’re lineally ascendants of decedents of the recipient. The spouses of all of the individuals enumerated above are additionally lined throughout the definition of kin. Although the definition of kin could be very huge nonetheless it doesn’t embody all of your kin.

For instance, should you make a present of ₹ 1 lakh to your spouse on Diwali or at another time through the yr, then there is no such thing as a tax legal responsibility for her. However any revenue she derives from that present, like curiosity or revenue on funding, shall be taxable in your revenue tax returns.

What about Diwali items from mates?

There’s some excellent news right here as items of an quantity as much as Rs 50,000 from mates or non-relatives should not taxable. Which means you probably have obtained a present of as much as Rs 49,000 then the identical is exempt from tax but when the overall worth reaches even Rs 50,001 in a given monetary yr, then the tax is relevant on the entire of the quantity. And right here’s the caveat: the Rs 50,000 exemption is an mixture complete.

So if three completely different folks have gifted you Rs 20,000, Rs 15,000, and Rs 26,000 in a given monetary yr, then your exemption restrict shall be breached and you may be taxed on your complete quantity of Rs 55,000 and never simply the stability quantity of Rs 5,000.

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