Taxability of Long Sevice Award in the hands of employees under Income Tax Act , 1961

Forums Tax Planning Taxability of Long Sevice Award in the hands of employees under Income Tax Act , 1961

Taxability of Long Sevice Award in the hands of employees under Income Tax Act , 1961

How to treat cost of long service awards in form of gold coins received by employees. Whether it is taxable in the hands of the employees or not ? Pls explain in detail with reference to sections of Income Tax act, 1961 as amended till date.

Profile photo of Kapil khamesra Asked By: Kapil khamesra 2 replies 0 helpful answers Last Updated: 10 months, 3 weeks ago
  • Profile photo of Kapil khamesraKapil khamesra
    Participant

    How to treat cost of long service awards in form of gold coins received by employees. Whether it is taxable in the hands of the employees or not ? Pls explain in detail with reference to sections of Income Tax act, 1961 as amended till date.

  • Yes it is taxable in the hands of employee and for the tax treatment please reach to your tax expert.

    • Profile photo of Kapil khamesraKapil khamesra
      Participant

      Long service award is recognition of the services by employee. It is neither Salary, Gift, reward, token, perquisite etc. It is given gratuitous and voluntarily without any obligation on the part of the employer. Under which section it will be taxable.

You must be signed in to reply to this question.