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.

Asked By: Kapil khamesra 1 replies 0 helpful answers Last Updated: 10 months, 4 weeks ago

Kapil 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.

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

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

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