# If we issue gift card to employees occasionally. how to treat this gift card amount? **URL:** \ **Category:** Ask the Community\ **Tags:** employeebenefits, income-tax, gift\ **Created:** [March 28, 2022, 10:58am UTC](https://community.greythr.com/t/if-we-issue-gift-card-to-employees-occasionally-how-to-treat-this-gift-card-amount/4462 "2022-03-28T10:58:45Z")\ **Posts on this page:** 12\ **Page:** 1
**Author:** ![Govardhan](https://avatars.discourse-cdn.com/v4/letter/g/7c8e57/32.png) [@Govardhan](https://community.greythr.com/u/Govardhan)\ **Post date:** [March 28, 2022, 10:58am UTC](https://community.greythr.com/t/if-we-issue-gift-card-to-employees-occasionally-how-to-treat-this-gift-card-amount/4462/1 "2022-03-28T10:58:45Z")
Hi Team, If we issue gift card (i.e.Amazon) to employees occasionally (i.e. festival, above and beyond, team excellent) how to treat this gift card amount? Govardhan. ---
**Author:** ![mohanjacob](https://avatars.discourse-cdn.com/v4/letter/m/65b543/32.png) [@mohanjacob](https://community.greythr.com/u/mohanjacob)\ **Post date:** [March 28, 2022, 11:23am UTC](https://community.greythr.com/t/if-we-issue-gift-card-to-employees-occasionally-how-to-treat-this-gift-card-amount/4462/2 "2022-03-28T11:23:08Z")
Up to Rs 4999 tax exempt. ---
**Author:** ![Govardhan](https://avatars.discourse-cdn.com/v4/letter/g/7c8e57/32.png) [@Govardhan](https://community.greythr.com/u/Govardhan)\ **Post date:** [March 28, 2022, 11:37am UTC](https://community.greythr.com/t/if-we-issue-gift-card-to-employees-occasionally-how-to-treat-this-gift-card-amount/4462/3 "2022-03-28T11:37:10Z")
Thanks Mohan. If we pay a gift card amount of more than 5000/-how to treat it in employee payroll? ---
**Author:** ![mohanjacob](https://avatars.discourse-cdn.com/v4/letter/m/65b543/32.png) [@mohanjacob](https://community.greythr.com/u/mohanjacob)\ **Post date:** [March 28, 2022, 11:59am UTC](https://community.greythr.com/t/if-we-issue-gift-card-to-employees-occasionally-how-to-treat-this-gift-card-amount/4462/4 "2022-03-28T11:59:10Z")
The excess over Rs 5k will be added as a taxable perquisite. ---
**Author:** ![Natarajan](https://avatars.discourse-cdn.com/v4/letter/n/db5fbb/32.png) [@Natarajan](https://community.greythr.com/u/Natarajan)\ **Post date:** [March 28, 2022, 11:59am UTC](https://community.greythr.com/t/if-we-issue-gift-card-to-employees-occasionally-how-to-treat-this-gift-card-amount/4462/5 "2022-03-28T11:59:15Z")
Dear Govardhana Up to 5000/- you can account as gift and anything above you have add it back to other allowance and tax the same. Thanks and Regards Natarajan S ---
**Author:** ![MohitB](https://avatars.discourse-cdn.com/v4/letter/m/c57346/32.png) [@MohitB](https://community.greythr.com/u/MohitB)\ **Post date:** [March 30, 2022, 9:10am UTC](https://community.greythr.com/t/if-we-issue-gift-card-to-employees-occasionally-how-to-treat-this-gift-card-amount/4462/6 "2022-03-30T09:10:39Z")
So anything above that will be taxed or the whole amount. Example, if a gift is of INR 6000/- then the total 6000 will be taxed or only 1000. Regards Mohit ---
**Author:** ![Badri.sv](https://avatars.discourse-cdn.com/v4/letter/b/dbc845/32.png) [@Badri.sv](https://community.greythr.com/u/Badri.sv)\ **Post date:** [March 30, 2022, 9:31am UTC](https://community.greythr.com/t/if-we-issue-gift-card-to-employees-occasionally-how-to-treat-this-gift-card-amount/4462/7 "2022-03-30T09:31:32Z")
Hi Mohit, The entire 6k gets taxed ---
**Author:** ![amiths](https://avatars.discourse-cdn.com/v4/letter/a/2acd7d/32.png) [@amiths](https://community.greythr.com/u/amiths)\ **Post date:** [April 6, 2022, 1:02pm UTC](https://community.greythr.com/t/if-we-issue-gift-card-to-employees-occasionally-how-to-treat-this-gift-card-amount/4462/8 "2022-04-06T13:02:45Z")
Gifts or Vouchers within Rs 5,000 in a financial year are tax-free. If it crosses 5K then it will be treated as Perquisite and tax will be deducted from the employee. Note: 5K limit is not for instance, It is cumulative value for the entire year. ---
**Author:** ![Jedhru](https://sea2.discourse-cdn.com/flex024/user_avatar/community.greythr.com/jedhru/32/189_2.png) [@Jedhru](https://community.greythr.com/u/Jedhru)\ **Post date:** [July 13, 2022, 6:10am UTC](https://community.greythr.com/t/if-we-issue-gift-card-to-employees-occasionally-how-to-treat-this-gift-card-amount/4462/9 "2022-07-13T06:10:42Z")
Only Excess amount will be taxed. in this case 5000 exemption and 1000 will be a taxable amount ---
**Author:** ![HrJebitech](https://avatars.discourse-cdn.com/v4/letter/h/b19c9b/32.png) [@HrJebitech](https://community.greythr.com/u/HrJebitech)\ **Post date:** [August 24, 2022, 5:26am UTC](https://community.greythr.com/t/if-we-issue-gift-card-to-employees-occasionally-how-to-treat-this-gift-card-amount/4462/10 "2022-08-24T05:26:45Z")
What if the employee though out the year win award and gets multiple amazon vouchers more than 5000. How are we supposed to tax the same. ---
**Author:** ![aambati](https://avatars.discourse-cdn.com/v4/letter/a/b38774/32.png) [@aambati](https://community.greythr.com/u/aambati)\ **Post date:** [August 24, 2022, 1:29pm UTC](https://community.greythr.com/t/if-we-issue-gift-card-to-employees-occasionally-how-to-treat-this-gift-card-amount/4462/11 "2022-08-24T13:29:26Z")
Once the gift amount exceeds Rs.4,999/-, the entire amount of gift would be taxable. ---
**Author:** ![Pawan123](https://avatars.discourse-cdn.com/v4/letter/p/d9b06d/32.png) [@Pawan123](https://community.greythr.com/u/Pawan123)\ **Post date:** [August 24, 2022, 3:05pm UTC](https://community.greythr.com/t/if-we-issue-gift-card-to-employees-occasionally-how-to-treat-this-gift-card-amount/4462/12 "2022-08-24T15:05:07Z")
Yes, if any gift amount exceeds Rs.5000 then it will be taxable as a Gift perk.