A gift received from an employer or third party by an employee is not automatically tax-free. It is taxable if it is received as a reward for services past, present or future (or simply, if it is provided by reason of the individual’s employment by way of voucher, see ¶9410 and ¶9200). Some factors of relevance in deciding whether a voluntary payment, benefit or perquisite may escape tax are as follows.

Whether, from the recipient’s standpoint, it accrues to him as a reward for services.

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