Long Service awards in the hands of employees under Income Tax Act, 1961

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Long Service awards in the hands of employees under Income Tax Act, 1961

How to treat receipt of long service awards in the form other than cash in the hands of the employees. point is whether it is taxable or exempt in the hands of the employees or not. Pls give your expert advice with specific section number under Income Tax Act, 1961. Whether it is taxable under the head salaries or income from other sources.

Profile photo of Kapil khamesra Asked By: Kapil khamesra 1 replies 0 helpful answers Last Updated: 10 months, 4 weeks ago
  • Profile photo of Kapil khamesraKapil khamesra
    Participant

    How to treat receipt of long service awards in the form other than cash in the hands of the employees. point is whether it is taxable or exempt in the hands of the employees or not. Pls give your expert advice with specific section number under Income Tax Act, 1961. Whether it is taxable under the head salaries or income from other sources.

  • Profile photo of Chetan ChandakChetan Chandak
    Moderator

    As per the provisions of Indian Income Tax Act, any gift received from employer in excess of Rs. 5000 per finacial year is taxable as salary. If it is in the form of Gratuity then exemption ccan be claimed upto Rs. 10/20 lakh during lifetime.

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