rambabu wrote:I think it is better to refuse the gifts received from the employer in these conditions.

How can you reduce gifts. If tax is payable, let this be so. any way, this is not 100%.  If you get a gift of Rs. 100/- and have pay tax Rs. 30/- ( may be just Rs 20/-), you still retain Rs. 70/- with you. Why lose the whole to save a part?

Then such gifts are not called as GIFTS. A Gift is one which has no Strings attached to it.

rambabu wrote:

Then such gifts are not called as GIFTS. A Gift is one which has no Strings attached to it.

 

A gift is gift. Employer gives gift without any strings. Taxability is another matter.  If gifts were made just tax free, the employers would manage to pay most of the remuneration as 'gift'  instead of salary.  Gifts even from other persons are taxable. There is some relaxation only for blood relation. 

 

Gulshan Kumar Ajmani wrote:

rambabu wrote:I think it is better to refuse the gifts received from the employer in these conditions.

How can you reduce gifts. If tax is payable, let this be so. any way, this is not 100%.  If you get a gift of Rs. 100/- and have pay tax Rs. 30/- ( may be just Rs 20/-), you still retain Rs. 70/- with you. Why lose the whole to save a part?

 

True, we need to be practical about it and accept whatever comes to us...ultimately you are gaining unless it is something you cannot afford to pay tax on, then of course you have the option to refuse !

I have done it. When I was selected for the prestigious Award known as Jawahar Award  a famous award popular in PSU steel plants for saving a substantial amount to the company, I refused to accept.. Because of the heavy taxes imposed on such awards.

By that logic people should refuse salaries alosoas they also attract taxes !!!

By that logic people should refuse salaries also as they also attract taxes !!!

Believe it or not. I have refused my my 3 months salary, when it was offered to me during my voluntary retirement party.I can understand your point of view. Salaries also should be refused but to that extent I'm paying taxes.

rambabu wrote:

I have done it. When I was selected for the prestigious Award known as Jawahar Award  a famous award popular in PSU steel plants for saving a substantial amount to the company, I refused to accept.. Because of the heavy taxes imposed on such awards.

 

Would the tax exceed the reward?   The tax is definitely not 100% or more. It is maximum 30% plus education cess.  You lose more by refusing award rather by paying tax. Is it better to pat 30% tax or forego entire 100%. I don't understand the logic. Hope you will elucidate. There is only one condition when you may refuse. It may be that you get award in shape of some non financial asset like Motor car but you don't have cash to pay rax. I came across some person who won lottery of a motor bike. This was taxable.  He paid tax to the lotter manager as a way of TDS and got the bike. I got him refund of income tax by filing his return showing total income including that of motor cycle lottery. .