Avoid Tax on Rewards from the company

[Guest]

Hi Experts,

I need one of your advise here. I'm working in a company for 8 years and due to my hard work and long tenure the company has announced an award worth 1 lac. I was happy that i would be receiving 1 lac as i have so many financial problems to be solved. But, i came to know that even that 1 lac would be taxed with 30% and i might get only 70k out of it which made me feel bad.

Could anyone guide me to give me an option where I can get the 1lac without any tax. If avoiding tax is inevitable, can I ask the company to provide me as 50k voucher worth products (TV/fridge/etc) and 50k worth on a holiday travel voucher in which way i would be utilizing the 1lac without any tax in other form.

Your reply to this will be highly appreciated.

Regards

Balan

[r.rajkumar kumar]

every think is taxable in the hands of empoyee.hence i suggest the company may sent you on official business out side india or take onlake and pay tax .and enjoy the balance. tax may come 20%or 30%depends on your salary barcket. tks

 

AI Summary

Taxability of employment awards: employer-provided cash or vouchers are generally taxable as employment income unless properly classified as business reimbursements. Company awards and gifts to an employee are ordinarily taxable as employment income and treated as a taxable perquisite. Converting cash awards into goods or travel vouchers does not automatically remove tax liability. Employer-paid official business expenses that are bona fide reimbursements, properly documented, are less likely to be treated as taxable income than discretionary awards; proper classification and employer withholding determine the tax outcome.