Tax Treatment of Gifts, Vouchers, Tokens: Employees’ Perquisites provided by Employer

Any gift or vouchers or token in lieu of which such gift may be received, given by the employer to the employee or member of his household, is taxable as perquisite, if aggregate value thereof is Rs. 5,000 or more per annum, otherwise the same shall be exempt.

Income Tax Rule 3(7)(iv) provides, as under:

The value of any gift, or voucher, or token in lieu of which such gift may be received by the employee or by member of his household on ceremonial occasions or otherwise from the employer shall be determined as the sum equal to the amount of such gift:

Provided that where the value of such gift, voucher or token, as the case may be, is below five thousand rupees in the aggregate during the previous year, the value of perquisite shall be taken as “nil”

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