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Former Member

Income Tax on gift Payments in payroll run

Hi Experts,

Please refer below scenario, and advice

There are multiple gift payments, and need to be taxable any amount crosses 5000 INR in FY.

eg. GIFT1- 1000

GIFT2- 3000

GIFT3- 4000

Once these payments participate in payroll run and processed based upon their annual accumulation should taxable.

APRIL payroll run GIFT1-1000 processed in payroll run

MAY- payroll run GIFT2- 3000 processed in payroll run

JUNE - payroll run GIFT3- 4000 processed in payroll run. As 1000+3000+4000= 8000 INR

so 8000-5000= 3000 INR should add to taxable bucket (/416).

Please advise.

Ragards,

Avi

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1 Answer

  • Aug 25, 2017 at 11:52 AM

    Hi Avi,

    There is no direct "Taxation on gifts" functionality in PY-IN, but there is a wage type called "Taxed but not Paid" that you can configure as per your requirement. The wage type is

    M450.

    Best Regards,

    Aman

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