Hi
If the company decides to give gold coins to its select employees as part of Bonus or appreciation drive then who would be taxed the employee or the company.
For eg Mr X for is good performance is awarded 4 gold coins of 99.9% purity of HDFC bank.
Now Mr X decides not to sell the gold coins or convert them into jewellery.But from a tax point of view is the receipt of Gold coins to be taxed in his Gross Income. If so then at what rate.
Also an appreciation or loyalty bonus would be taxed at what rate to the employee and how can he minimize the tax impact.
Please respond
Much obliged
Roshini Arya
From India, Jalandhar
If the company decides to give gold coins to its select employees as part of Bonus or appreciation drive then who would be taxed the employee or the company.
For eg Mr X for is good performance is awarded 4 gold coins of 99.9% purity of HDFC bank.
Now Mr X decides not to sell the gold coins or convert them into jewellery.But from a tax point of view is the receipt of Gold coins to be taxed in his Gross Income. If so then at what rate.
Also an appreciation or loyalty bonus would be taxed at what rate to the employee and how can he minimize the tax impact.
Please respond
Much obliged
Roshini Arya
From India, Jalandhar
Hello Roshini,
1) If employee shows it as Received the Gift from company than he/she can avail the tax free benefits if it is below 50k, above 50k count as taxable income
in future when he or she sell the gold than count as Capital gain or loss and capital of previous year count on Index number.
2) If employee received gold against his bonus amount than no questions gold= bonus amount.
Please confirm this from finance / accounts expert.
Thanking you,
Ashish
From India, Pune
1751) If employee shows it as Received the Gift from company than he/she can avail the tax free benefits if it is below 50k, above 50k count as taxable income
in future when he or she sell the gold than count as Capital gain or loss and capital of previous year count on Index number.
2) If employee received gold against his bonus amount than no questions gold= bonus amount.
Please confirm this from finance / accounts expert.
Thanking you,
Ashish
From India, Pune
Hi, If employee receive the gifts from the management (i.e. Dewali Gifts, New year gifts etc.,) that one is tax exempted as per Income Tax Act. Srini
From India, Hyderabad
From India, Hyderabad
Many Thanks for your response
I just have an addition to be made.
As you have correctly mentioned that a gift till 50K is not taxable. So can the company as per law give a gift to the spouse of the employee or parent.
XYZ Ltd wants to give a gift of Rs 150000 to employee Mr A for his good performance
Mr A is an employee of XYZ corp and receives a gift of Rs 50000 which is tax exempt.
Wife of Mr A i.e Mrs A is given a gift of Rs 50000 (She is a housewife and has no income & files NIL return)
Also parents of Mr A are given a gift of Rs 50000 (Parents are senior citizen and also file NIL returns)
Will the tax authority have an issue with this
What will the positive and negative aspects for the company XYZ Ltd
Please clarify and I shall be much obliged.
Regards
Roshini
From India, Jalandhar
I just have an addition to be made.
As you have correctly mentioned that a gift till 50K is not taxable. So can the company as per law give a gift to the spouse of the employee or parent.
XYZ Ltd wants to give a gift of Rs 150000 to employee Mr A for his good performance
Mr A is an employee of XYZ corp and receives a gift of Rs 50000 which is tax exempt.
Wife of Mr A i.e Mrs A is given a gift of Rs 50000 (She is a housewife and has no income & files NIL return)
Also parents of Mr A are given a gift of Rs 50000 (Parents are senior citizen and also file NIL returns)
Will the tax authority have an issue with this
What will the positive and negative aspects for the company XYZ Ltd
Please clarify and I shall be much obliged.
Regards
Roshini
From India, Jalandhar
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