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:
₹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.)
Pazcard gift wallet - benefits for your employees
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
Check credited money and balance in different wallets: access card details and all transactions made in the app.
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
Employees can raise queries within the app and our team will resolve them in 30 minutes