LatestAccounting And Audit 12 November 2026
Diwali Employee Gifts: New Tax-Free Limit Explained
The government has raised the tax‑free ceiling for Diwali gifts to staff, allowing employers to give larger presents without triggering tax liability. The change also clarifies rules for NRIs, when income tax returns become mandatory, and how the revised limit interacts with existing tax audit thresholds, helping businesses avoid penalties while rewarding workers during the festival season.
Key updates on Diwali gifts for employees
- The tax‑free gift limit has been increased, letting companies give higher‑value tokens without tax.
- Gifts exceeding the new limit are taxable as per income‑tax rules.
- Specific provisions now cover NRIs and define when filing ITR becomes compulsory.
- The amendment aligns the gift limit with existing tax audit thresholds, reducing compliance risk.
For a detailed breakdown, see the original article.
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