4The Perquisite value is the Cost of such Gift/ Voucher/ Token to the Employer

An aggregate value of Gift/ Voucher/ Token to the extent of Rs 5000/- p.a is exempted from tax under this rule, however on exceeding this value the aggregate value of gifts received during the previous year shall be taxable.

Gifts made in cash or convertible later into monetary form (e.g. Gift cheques etc.) are also taxable under this rule.