Hello everyone… I would like to know whether the incentives taxable or not…? Person working in consultant firm,get incentives as per recruitement… either 2% or 3%… If his monthly gross is 15000 and getting incentive as 4000 or 5000 on recruitement of candidate… Is that be taxable…
Incentives are taxable as per law. Any kind of money given to an employee is taxable except gift coupons or gift cheques. Hope that clarfies your doubt.
The value of a gift , or voucher , or coupons provided by an employer, the aggregate value of which does not exceed Rs 5,000 annually, is tax - free in the hands of an employee.
I’m also looking for answers, where should this be mentioned in the IT Declaration??
Hello Mr Babu,
The employer has the responsibility to deduct taxes on any gifts given to employees which exceed Rs.5K in a year. However, if that does not happen, the employee can show the excess amount as ‘Other income’ while filing their personal tax returns or inform their payroll to include it in the taxable income. Hope this helps.