Neutral impactEconomy
Got a Diwali gift from your employer? Check the tax rules
Mint 1 hr ago·2 Nov 2026, 7:44 am
Employers often give Diwali bonuses or gifts to employees, but tax rules differ for each. A cash bonus is fully taxable, added to your salary and taxed according to your income slab. However, a non-cash gift, like gold or jewelry, is tax-free if its value is below ₹15,000. If the gift exceeds this limit, the excess amount becomes taxable.
This distinction matters because it can change your annual tax liability. A small bonus might push you into a higher tax bracket, whereas a non-cash gift below the limit remains exempt. Investors should check their Form 16 to see how these amounts are categorized and plan their finances accordingly.
To avoid surprises, employees should ask their HR department for a clear breakdown of their compensation. Keeping track of such details helps in better financial planning and ensures compliance with tax regulations.
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- Category: Economy.
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