Perquisites Taxation

[Tax Tycoon]

I received 6000 amazon gift card as reward which was included u/s 17(2)(viii) and tax was deducted on entire 6000. I informed payroll team to make 5000 as nil and include remaining as taxable income. They denied to do that also refused to change in Form 16. During ITR I will make 5000 as nil it would trigger an alert right?

AI Summary

Gift Card Reward Sparks Tax Complexity: Professional Seeks Clarity on Exemption Limits and Reporting for Amazon Incentive A tax professional sought advice about an Amazon gift card received as a reward, valued at 6000, with tax deducted on the entire amount. The discussion centered on whether 5000 could be exempted under Rule 3(7)(iv) and how to reflect this in the income tax return. An expert suggested showing the entire income and indicating the gift amount as exempted, while emphasizing that if the gift exceeds 5000, the entire amount becomes taxable.