Corporate Gifting Made Smarter with Dausto

  The practice of corporate gifting has always been a way of cultivating goodwill and reinforcing relationships while celebrating milestones in the business domain.  Acceptable as a practice throughout varied sectors, corporate gifting in India comes with a legal framework of compliance.  From taxation to the anti-bribery provisions, the legal nuances surrounding corporate gifting require businesses to appreciate and, at the same time, be accountable. Tax Rules Relating to Gifting Employees Corporate gifting in India has several dimensions, as supported by corporate gifting under the Income Tax Act, 1961. Unlike the general belief, all gifts offered by employers to employees are not exempted. As per the current provisions, gifts not exceeding ₹5,000 in a financial year are exempt.  However, if the value of gifts received by the employee exceeds the ₹5,000 threshold, the whole value is taxable to the employee as a perquisite and would be added to her salary income....