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Rs 20 000 and a tailored suit was given by Zaad Ltd, an advertising agency, as a Christmas gift to each advertising agent of Zaad Ltd to maintain a feeling of happiness and loyalty towards the company

Rs 20 000 and a tailored suit was given by Zaad Ltd, an advertising agency, as a Christmas gift to each advertising agent of Zaad Ltd to maintain a feeling of happiness and loyalty towards the company. A payment of Rs 15 000 was also done to each advertising agent as a reimbursement of an annual subscription to a private club at which the advertising agents meet prospective customers of Zaad Ltd.

 

Is he liable for tax?

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