## Gift from Employer — Perquisite Valuation

When an employer gives a gift to an employee, the tax treatment depends on the form of the gift.

### Rule Table

Type of Gift	Taxable Value
Gift in Cash / Money	Fully Taxable (no exemption limit)
Gift in Kind or Gift Voucher	Fully Exempt if aggregate value during the previous year is less than ₹ 5,000. If ₹ 5,000 or more — Fully Taxable (entire amount, not just the excess)

### Key Points

The ₹ 5,000 limit is per annum (aggregate), not per gift.
Cash gifts get no ₹ 5,000 shelter — every rupee is taxable.
The ₹ 5,000 exemption is an "all-or-nothing" threshold: cross it, and the whole amount becomes taxable, not just the excess over ₹ 5,000.

Worked example

### Example 1

Example 1: Employer gives Mr. A a gift voucher of ₹ 4,500 on his birthday and another ₹ 400 voucher on Diwali during PY 2025-26.

Aggregate = ₹ 4,900 (< ₹ 5,000) → Fully Exempt.

### Example 2

Example 2: Employer gives Mr. B a gift voucher of ₹ 6,000.

Since ₹ 6,000 ≥ ₹ 5,000, the entire ₹ 6,000 is taxable as perquisite (not just ₹ 1,000).

⚠️ Common exam mistakes

Treating only the excess over ₹ 5,000 as taxable — the entire value is taxable once threshold is crossed.
Applying the ₹ 5,000 exemption to cash gifts — exemption is only for gifts in kind/vouchers.
Checking the limit gift-by-gift instead of on aggregate annual value.

Reference:

Now that you've read this — what's next?

Move from understanding → mastery in 3 clicks. Each option below picks up from this lesson's topic.

Perquisite: Gift from Employer

Worked example