Diwali bonuses are taxable as salary, report says
In short
Diwali cash bonuses from employers are taxed as salary at the employee’s normal tax rate. The report also says some gifts can be tax-free and should be reported in ITR.
This matters for salaried employees because their festive payout may not be fully take-home pay. The exact exemption rules are not stated in the available reporting.
What the reporting says
Diwali cash bonuses from employers are taxed as salary at the employee’s applicable rate, according to a publisher summary. The reporting adds that some gifts may be exempt from tax and says employees should report the bonus in ITR. The immediate consequence is a possible tax bill for salaried workers, while the exact exemption limits are not stated.
Why it matters
The report says employer-paid Diwali cash bonuses are taxed as salary at the employee’s applicable rate, and that some gifts may be exempt and need to be reported in ITR. This affects salaried workers receiving festive payouts because the bonus may increase tax liability. The source does not state the exemption threshold or any specific filing rule beyond the need to report it.