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

AI Summary

Employee Seeks Tax-Free Alternatives for 1 Lakh Reward; Considerations Include Vouchers or Business Travel Abroad. An employee seeking advice on avoiding taxes on a 1 lakh reward from their company expresses concern about a 30% tax deduction, which would reduce the amount to 70,000. They inquire about alternatives, such as receiving the reward as vouchers for products or travel to avoid taxes. A respondent advises that all rewards are taxable and suggests that the company could send the employee on official business abroad as a potential tax mitigation strategy, noting that the tax rate depends on the employee's income bracket.