Christmas Gifts to charities and the business employees would also be tax deductible, although with employees, it would be important to ensure that gifts and staff entertaining are not excessive over the course of a tax year, otherwise the employee may need to pay tax.
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For example, if the business is a chocolatier, then it could make Christmas Gifts of chocolates to the general public for promotional purposes and obtain a tax deduction for the cost of the chocolates.Therefore, FBT is not payable on entertainment provided to non employees, the non employee expenditure is not tax deductable.Marriage Gifts Income Tax Exemption As per the provision of taxation of gifts, any Gift received from any person on the occasion of the marriage is not liable to income tax.However, if the cost of gifts given to a person in a 12 month period total more than 50 (excluding VAT) and you have claimed the input VAT, you will have to charge output VAT on the total cost of the gifts. .FBT (Fring Benefit Tax) Legislation provides that a Christmas Party holds the characteristics of a meal entertainment or recreation benefit, and therefore, may be fully or partly subject to a FBT liability.Scenario 2 : If the value of gift received is Rs 55,000 then total 55,000 (and not just 5,000 which is over the 50,000 mark) will be included in taxable income.Any reader interested in discussing this topic further can telephone Graham Jennings on in our Ascot office or James Moody on in our Putney office.There is a further relaxation of the rules where a company makes a gift of one of their products, and the item is given away during the ordinary course of that business, to advertise to the public generally.Gift in contemplation of death of the donor.You can see CRAs details about.Meals (food and drink including alcohol) provided to current employees on site during normal work hours are exempt from FBT under the property benefit exemption however their associates will remain subject to FBT.Tax Relief on Christmas Gifts.Kirk Rice LLP, taxing Times Questions, the Question: I am planning to give some Christmas gifts to some of my best customers this year.1) Gifts up to Rs 50,000 a year : A recipient will not be assessed any tax if the value of gift is less than Rs 50,000 a year irrespective of who gifts the money.Christmas gifts to charities and the business employees would also be tax deductible, although with employees, it would be important to ensure that gifts and staff entertaining are not in excessive over the course of a tax year, otherwise the gift maybe treated.Scenario 4 : If any of your above relatives gifts you Rs 51,000 then the full amount is exempt from taxation.You can also email.Most employers provide social activities/functions such as a Christmas Party, other than the cost of the food, alcohol, entertainment, travel accommodation (connected with the Christmas Party do you consider the implications of taxes when budgeting for employee Christmas Parties?(Visited 293 times, 1 visits today).The most common use of these certificates is as additional remuneration means for employees.2) Gifts from relatives : While the general rule of Rs 50,000 holds good for any donor in general like a friend, what if the donor is a blood relative?