Diwali Bonus: What taxation rules apply to a Diwali bonus received from a company? – Diwali bonus, you will have to pay tax on the Diwali bonus received from your employer

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Diwali has passed. On this occasion it is customary to give gifts. Many companies gave Diwali bonuses to their employees. On the occasion of this festival of lights, people buy gold and silver. Some people invest in other types of assets. This Diwali bonus money is very useful. But withholding tax on the bonus is levied on the bonus amount in certain situations. Please let us know in detail.

Bonuses or vouchers received by the company on Diwali or any other holiday are subject to income tax if their total amount exceeds 5000 rupees. This limit applies to one or more bonuses received during the financial year. If you receive more than Rs 5,000 as a bonus in any financial year, then this amount will be added to your income. It will then be taxed according to your income tax.

Many companies reward employees more than once a year. Suppose a company gives a bonus of Rs 5,000 to its employees on the occasion of Diwali. Then, on the occasion of Christmas, she gives a bonus of four thousand rupees. In such a situation, Rs 4,000 received at Christmas will be subject to income tax. This is because it exceeds the Rs 5,000 exemption limit in the fiscal year. This amount will be added to your income. Then it will be taxed.

It is also important for you to understand that if you received money as a gift from a family member on Diwali, then it will not be taxed. What relationship will apply to a family member is specified in the Income Tax Rules. If a husband gives money to his wife as a gift, it will not be taxed. If a wife gives money to her husband as a gift, then they will not fall under the tax grid. If you receive money as a gift from a brother, sister, father or grandfather, then it will not be taxed.

If you receive money as a gift from a relative, other than the above relationships, then they will be taxed. If your friend gives you an amount as a gift, it will be taxed. But this amount is subject to tax only if the amount exceeds a certain limit. Gifts up to Rs 50,000 from a relative are tax-free. It will only be considered taxable if the value of the gift exceeds that amount.

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