Income-tax Act 2025 changes taxation of Diwali gifts and bonuses

Business Nov 02, 2026

Diwali gifts and bonuses from work are always a nice perk, but the new Income-tax Act, 2025 (kicking in April 2026) changes how these are taxed.

Non-cash goodies like vouchers or tokens stay tax-free as long as their total value for the year is under ₹15,000.

Bonuses always taxed, gifts ₹15,000+ taxable

If you get non-cash gifts worth ₹15,000 or more in a year, the whole amount gets added to your taxable salary.

Diwali bonuses, no matter how small, are always taxed right away.

For example, if your taxable income is just above ₹12 lakh and you get a big bonus, you could lose out on certain tax rebates.

So it's smart to keep track before making any festive spending plans!