Perquisites Taxation

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..... Perquisites Taxation
Query (Issue) Started By: - Tax Tycoon Dated:- 12-4-2025 Last Reply Date:- 13-4-2025 Income Tax
Got 7 Replies
Income Tax
I received 6000 amazon gift card as reward which was included u/s 17(2)(viii) and tax was deducted on entire 6000. I informed payroll team to make 5000 as nil and include remaining as taxable income. They denied to do that also refused to change .....

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..... in Form 16. During ITR I will make 5000 as nil it would trigger an alert right? Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: While filing return you may indicate the taxable income.   Reply By Tax Tycoon: The Reply: So I can reduce taxable income. Gift card value 6000. E.g if taxable income is 516000 I will change it as 511001 (4999 excluded as per Rule 3(7)(iv)).   Rep .....

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..... ly By DR.MARIAPPAN GOVINDARAJAN: The Reply: Ok. You have to show the entire income and  to indicate the gift amount as exempted income in the return. Reply By Tax Tycoon: The Reply: Where I need to mention 17(2)(viii) during ITR I mean do we have such provision? Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: Since in Form 16 it was mentioned as Rs.6000/- you cannot make it as Rs.5000/-.& .....

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..... nbsp; TDS was recovered for the entire Rs. 6000/-  As per Rule 3(7)(iv) the exemption is up to Rs.5000/-. If the gift exceeds Rs.5000/- the entire amount is liable for taxation and your employer rightly deducted tax at source for the entire amount.  It is my view. Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: Please ignore my second view.  Reply By Tax Tycoon: The Reply: But be .....

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..... neficial interpretation must be liberal 4999 must be nil anything above must be taxable. Many sources confirmed the same. I am unable to include screenshots.
Discussion Forum - Knowledge Sharing .....

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