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Income Tax on gift Payments in payroll run

Aug 25, 2017 at 06:53 AM


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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.



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1 Answer

Aman Tyagi
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


Best Regards,


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