What is the Paytm Gift wallet?
The Paytm Gift wallet Card is a prepaid digital solution that offers tax-saving gift allowance to employees up to a sum of Rs 5,000 every financial year. The Paytm Gift wallet appears as a sub wallet in your employees’ Paytm App. You can send funds to this wallet, which can be spent at over large number of online and offline merchants accepting Paytm. How much can employees save with the Paytm Gift wallet?
According to the Income Tax Act, Pre paid gift instruments for employees can help them save taxes on a sum of up to Rs 5,000 per financial year. Employees can save up to 30% in taxes of the value of the gift issued to them. How can we issue the Paytm Gift wallet to our employees?
Sending gift funds to employees happens through our online dashboard. You will first need to get a Business wallet for your company created. The online dashboard can be used for other Paytm wallets also such as Food / Fuel/ Allowances. Where can employees spend their Paytm Gift wallet?
The employee gift wallet can be used to spend over all online and offline Paytm merchants without any P2P or Peer to bank transfer. Can we issue a gift wallet of value more than Rs 5,000?
It is the prerogative of the company to disburse any amount to the gift wallet, provided employees Paytm balance does not exceed Rs. 1 Lakh (Main Wallet+ Gift Wallet + Food Wallet, etc.). Every time gift wallet funds are sent to an employee a new gift wallet is created, a maximum of Rs. 10,000 can be sent per gift wallet. How does taxation work on a gift wallet of value more than Rs 5,000?
If the aggregate amount in a financial year is more than Rs. 5,000 then the excess over Rs. 5,000 would be taxable under rule 3(7)(iv).
Please do not share your Paytm Wallet password, Credit/Debit card pin, other confidential information with anyone even if he/she claims to be from Paytm. We advise our customers to completely ignore such communications & report to us at firstname.lastname@example.org. read more