Jemimah Rodrigues' unbeaten 127 and a record partnership with Harmanpreet Kaur powered India to a historic 339-run chase over Australia in the Women's World Cup semi-final, echoing Gautam Gambhir's iconic 2011 knock and ending the Aussies' 15-match streak
Know This Before Spending Your Diwali Bonus – Tax Rules Explained
Know This Before Spending Your Diwali Bonus – Tax Rules Explained
Many people assume festive gifts and bonuses are completely tax-free. The truth is, some Diwali perks are taxable, and failing to declare them correctly could draw the attention of the Income Tax Department.
New Delhi: With Diwali just around the corner, excitement is building in offices across the country. Employees are eagerly looking forward to their Diwali bonuses which often come in the form of cash, sweets, gift vouchers, clothes, or gadgets. But while these festive perks feel like a treat, many are unaware that they could come with a tax liability, turning a joyous bonus into a surprise for your wallet.
Many people assume festive gifts and bonuses are completely tax-free. The truth is, some Diwali perks are taxable, and failing to declare them correctly could draw the attention of the Income Tax Department.
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Small gifts are usually tax-free: Gifts from employers are exempt from tax if their value does not exceed Rs 5,000. This includes items like sweets, small gadgets, or festive clothes.
Expensive gifts are taxable: Gifts worth more than Rs 5,000, such as high-end electronics or jewellery, are fully taxable.
Tax treatment: The value of taxable gifts is added to your income and taxed at the applicable income tax rate, just like your regular salary.
Unlike small festive gifts, cash bonuses given during Diwali are treated as part of an employee's salary and are fully taxable. For example, a Diwali bonus of Rs 30,000 will be added to your annual income and taxed according to your income tax slab. There is no separate exemption for such bonuses, which makes it important for employees to report them in their Income Tax Return (ITR) to avoid any notices from the tax authorities.
Under the new tax regime, which is now the default for most taxpayers, income is taxed in slabs based on annual earnings:
Up to Rs 4,00,000: No tax
Rs 4,00,001 – Rs 8,00,000: 5% tax
Rs 8,00,001 – Rs 12,00,000: 10% tax
Rs 12,00,001 – Rs 16,00,000: 15% tax
Rs 16,00,001 – Rs 20,00,000: 20% tax
Rs 20,00,001 – Rs 24,00,000: 25% tax
Above Rs 24,00,000: 30% tax
Additionally, the new system allows a deduction of Rs 60,000 for income up to Rs 12 lakh, helping reduce the overall tax liability slightly.
Source: ZeeNews
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Jemimah Rodrigues' unbeaten 127 and a record partnership with Harmanpreet Kaur powered India to a historic 339-run chase over Australia in the Women's World Cup semi-final, echoing Gautam Gambhir's iconic 2011 knock and ending the Aussies' 15-match streak
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