Avoid Tax on Rewards from the company, Income Tax

[Poobalan Rathinam]

Hi Experts,

I need one of your advise here. I'm working in a company for 8 years and due to my hard work and long tenure the company has announced an award worth 1 lac. I was happy that i would be receiving 1 lac as i have so many financial problems to be solved. But, i came to know that even that 1 lac would be taxed with 30% and i might get only 70k out of it which made me feel bad.

Could anyone guide me to give me an option where I can get the 1lac without any tax. If avoiding tax is inevitable, can I ask the company to provide me as 50k voucher worth products (TV/fridge/etc) and 50k worth on a holiday travel voucher in which way i would be utilizing the 1lac without any tax in other form.

Your reply to this will be highly appreciated.

Regards

Balan

Posts / Replies

[r.rajkumar kumar]

every think is taxable in the hands of empoyee.hence i suggest the company may sent you on official business out side india or take onlake and pay tax .and enjoy the balance. tax may come 20%or 30%depends on your salary barcket. tks