Gift allowance

Gift allowance for employees to save tax

Gifts to employees are taxable. Now easily add money to Pazcard Gift Wallet, let your employees utilize it pan-India and save taxes.


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What is a gift allowance?

Gift allowances are used to buy any gift from online and offline stores and are tax-exempt up to ₹5000 annually. Gift allowance is a fixed allowance and is taken from the employee's salary.

Employees can use the money to purchase anything of their choice. However, employers can restrict what employees buy with the gift wallet. For example, employers can restrict using gift allowance towards cigarettes.

Gifts received by an intern from his employer can be exempt u/s 10(16) if it can be said that the same has been provided to meet the cost of education. 

How to calculate gift allowance?

Employers can design a gift allowance policy for their employees. The government only has set the upper limit (₹5000) and it is up to the employer to structure it based on the salary slabs of employees.

For example, ₹5000 for employees earning more than ₹ 5 lacs. And ₹4500 for people earning 4 lacs to 5 lacs and so on.

Here is a simple breakdown:

Total gift allowance Monthly gift allowance
₹ 5000 ₹ 416.6

₹5000 is deducted from the employees total taxable income. It means they don't have to pay tax on the ₹5000 helping them save tax money.

How simple is providing gift allowance with Pazcard?


💳 Employees get Pazcard that has multiple wallets including gift wallet.


💰 You can top up the gift allowance money into the gift wallet of employees monthly.


🎁 Since gift wallet is an open wallet, employees can use it anywhere (Landmark, Amazon, etc.)

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Pazcard gift wallet - benefits for your employees

Open network across India

Open network across India

Employees can use the money in Pazcard gift wallet at any outlet that is government-approved

Full visibility with Pazcare app

Full visibility with Pazcare app

Check credited money and balance in different wallets: access card details and all transactions made in the app.

Pazcard in employees’ control

Pazcard in employees’ control

Employees can manage the card such as set pin, lock and unlock the card, enable tap to pay, etc. on the app

30-minute TAT for customer queries

30-minute TAT for customer queries

Employees can raise queries within the app and our team will resolve them in 30 minutes

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When I founded Wint Wealth, I knew our employees deserved the best. So we adopted both Pazcare’s insurance and their innovative Pazcard.

With Pazcard my employees are now able to save taxes on their food and fuel expenses. Whether ordering food online or buying groceries at supermarkets our employees use Pazcard on a daily basis.

Ajinkya Kulkarni
CEO & Co-Founder

Ajinkya Kulkarni

When we wanted to give more employee benefits, Pazcard was the answer to our needs.
Their competitive pricing and diverse benefits - from food, fuel, telecom, to gifts wallets elevated our employee perks. What sealed the deal was their flexible, supportive team. Now we’re offering more and better, without breaking the bank.

Umang Mehta
Sr Operations Manager


Have questions? We are here to help

Is a gift to employees taxable?

Gift to employees is not taxable up to ₹5000. Above that, it is taxable.

What is the gift amount allowance

Gift amount allowance is an allowance to employees to save tax on employee's salary. The allowance is non=taxable up to ₹5000. So, employers can take a portion of employee's CTC and make it gift allowance.

What is the gift limit for salary?

The government has an upper limit of ₹5000 per year as the gift limit for salary.

What is the maximum allowable gift to an employee?

The maximum allowable gift to an employee for tax-saving gift allowance is ₹5000 annually.