AI Drafter 
TaxTMI 
TaxTMI 
Sir, Our Company give cash reward/prize to the children of employees every year who has got more percent from the prescribed limit. Will this amount will be part of Employee CTC and income tax is payable thereon. Regards Pradeep Jain
Deduction of Income Tax on case reward given to employees children
Pradeep Jain
Gift exemption for employee children's cash rewards can exclude small annual gifts from taxable employee income. Whether cash rewards given by an employer to employees' children are part of the employee's CTC and taxable is queried; the reply states that such payments treated as gifts qualify for exemption where a gift below 5000 per annum is exempt, indicating nominal annual rewards are not taxable if they fall within that exemption. (AI Summary)
