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On the occasion of Diwali, companies give bonuses, sweets, gifts, shopping vouchers or other things to their employees. Many companies also give cash to their employees. But do you know that all these things income tax Are the rules not the same?
If the company has given you a shopping voucher or any gift on Diwali, then you can get tax exemption if its value is less than ₹ 15,000. But if the company has transferred cash bonus to the account, then it will be considered as salary income and may be taxable.
This rule is applicable under the new Income Tax Law and Income Tax Rules, which have come into effect from April 1, 2026.
Tax exemption up to ₹ 15,000 on gifts received from the company
Under Rule 15 of the Income Tax Rules 2026, there is a provision for special exemption on gifts, vouchers and tokens given in lieu of gifts from the employer. According to the rules, if the total value of such gifts received by an employee or his family member from the company is less than ₹ 15,000 in the entire tax year, then its taxable acquisition value will be considered nil.
This discount is not only for Diwali. The rules have not limited it to festivals or any special occasion. That is, the total value of eligible gifts received on different occasions in the year will be seen.
What if you get a Diwali voucher worth ₹9,000 and a shopping voucher worth ₹5,000?
Let us understand this with an example. Suppose your company gave a gift voucher of ₹ 9,000 on Diwali. Apart from this, a shopping voucher of ₹ 5,000 was also given on any other occasion in the year.
The total cost of both was ₹ 14,000. Since this amount is less than ₹ 15,000, its taxable acquisition value as per rules will be zero.
But if the company gives you two gifts of ₹ 8,000 and ₹ 8,000 in a year, then their total value will be ₹ 16,000. Since the total value is not less than ₹15,000, exemption will not be available in this case and the entire amount of ₹16,000 will be treated as taxable purchase.
Note: The word ‘below ₹15,000’ in the rule means less than ₹15,000. Therefore, this exemption will not be available even if exactly ₹ 15,000 is received.
Will there be a discount of ₹15,000 on cash Diwali bonus also?
The answer is- no. Cash bonus cannot be considered as gift voucher or token discount. This is part of the employee’s salary.
According to Section 15 of the new Income Tax Act, the salary received by the employee from the employer or former employer is subject to tax. In this, tax liability is decided according to the nature and time of payment.
For example, if your company has given a cash bonus of ₹25,000 on Diwali, this amount can be added to your salary income. Tax on this will be calculated as per your applicable tax slab and tax regime.
What will be the impact of Diwali bonus on tax exemption of ₹12 lakh?
Diwali bonus can increase your total annual salary. Therefore, it is important to see what your total income is after receiving the bonus.
Under the new tax regime, eligible resident individual taxpayers can get a maximum tax exemption of ₹60,000 under Section 156 on total taxable income up to ₹12 lakh. Apart from this, salaried employees also get a standard deduction of ₹ 75,000.
Because of this, the tax can be zero if the annual gross salary of an eligible employee with normal salary income is up to ₹ 12.75 lakh. However, this is possible only if there is no additional situation like second taxable income or income taxed at a special rate.
Be sure to check these things in the salary slip
After receiving Diwali bonus or gift, definitely check your salary slip. Check whether cash bonus is included in the salary or not. If the total value of gifts and vouchers is ₹15,000 or more, whether the company has shown its taxable value as per applicable rules.
Also, see the account of TDS deducted from salary. If the company has deducted tax, match it with the information given in your TDS certificate and income tax return.
Keep this in mind while filling ITR
Under the new rules applicable from April 1, 2026, the certificate of TDS on salary will be issued in the name of Form 130. This has replaced the old Form 16. In this, information about salary, taxable income, exemption and deducted TDS is given. The employee should match the information entered in it with his salary slip and other documents. While filing ITR, it is important to give correct information about taxable bonuses and gifts.
It is important to understand the difference between cash bonus and gift.
Not every benefit received from the company on Diwali is tax free. Exemption can be availed if the total value of eligible gifts, vouchers and tokens is less than ₹15,000 in the tax year. Whereas, cash bonus is salary income and it is taxed as per the applicable tax slab.
Therefore, do not estimate tax on receiving bonus or gift just by looking at the amount. Calculate the tax keeping in mind its nature, total gifts received during the year and your total taxable income.