Employee cash awards are taxable in hands of employee ?
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Hi @sagarg
Yes they are!
They come under employee benefits and can be done as One time tax or added to the regular IT and deducted over the year.
But yes they are taxable 
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Gifts from an employer to employee is taxable as perquisites if their value is more than Rs 5,000.
The Rs 5,000 limit is for an entire financial year.
“If the employer doesn’t deduct tax at source, the employee will need to declare
the gift under the head “salaries” in the income tax return (ITR)
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If the amount of the award or the prize is more than INR 10,000, TDS would have to be deducted from the winnings before paying it to the winner according to the provisions of [Section 194B]
If you win awards or prizes, check whether they are approved by the Government or not. If the award is approved by the Government you don’t have to pay taxes. If, however, the award is not approved, tax would have to be paid.
Awards which are not approved by the Government and prizes are taxed at the rate of 30%. Cess would also have to be added to the tax rate which brings the total tax rate to 31.2%. This rate would be independent of the [tax slab rate] of the individual. This means that even if the individual’s income falls in the 20% slab rate, winnings from awards and prizes would still be taxed @31.2%. If the prize or winning is received in kind, the market value of the item received is taken into consideration. The tax is, then, levied on the market value of the item.
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