Tax guidelines on Diwali Bonus?

Ask the Community Income Tax
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Hi Members,

Festival wishes to all.

What are the tax rules on Diwali gifts or Bonus? Are there ways to save tax on this?

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As per the provisions of Income Tax act, bonus received by the employee within the type of money shall be chargeable to tax under ‘Income from Salary’ and subjected to tax in accordance with the slab charges.
The whole amount received as Diwali Bonus will be taxable at the slab rate applicable to the employee. No there are no specific tax deductions available on bonus received( except for the limits).