As per the order issued by the Finance Ministry, this bonus will be given only to those employees who have worked continuously for 6 months till the year 2025. If any employee has not been in the job for the entire year, then he will not be given the full bonus.

How much bonus will be given?

The Finance Ministry has also clarified the amount of this bonus for Group C and non-gazetted Group B employees. The Finance Ministry stated that if an employee does not serve for the entire year, they will be paid a pro-rata bonus. Pro-rata means that the bonus will be paid according to the number of months they served. The government has fixed the bonus amount at 6,908.

Paramilitary forces will benefit

The Finance Ministry has also clarified that employees working on a pay structure with the central government and receiving other types of bonuses will also benefit from this. Furthermore, this bonus will be given to Central Armed Forces (CAPF) and armed forces personnel.

By what formula will the bonus be calculated?

This bonus from the central government will be calculated on a maximum monthly salary of 7,000. For example, 7,000 × 30 ÷ 30.4 = ₹6,907.89. This has been reduced to ₹6,908. Central employees were already happy with the 3% DA hike, but the bonus announcement spoiled their Diwali. With the three% increase, the DA has now increased from 55% to 58%.

DA Hike : From peons, clerks to IAS officers, who got their salaries increased by how much? Here’s the full list.

The post Diwali Bonus 2025 : Government employees are in for a treat! After the DA, bonuses have been announced. Find out how much you’ll receive. first appeared on Rightsofemployees.com.

Today we will tell you about the taxes levied on Diwali and bonus and the ways to avoid these taxes (Tax Saving Tips).

Tax on Diwali gifts and bonuses

Under the Income Tax Act, any gift or bonus received from the company is considered a perquisite and being a part of your salary, it comes under the purview of tax. Therefore, the tax levied on the income from bonus will be decided according to your overall tax slab.

However, some Diwali gifts and bonuses are not taxable. Like

Gifts up to Rs 5,000: There is no tax on gifts up to Rs 5,000 received from the company.

Gifts received from others: Gifts received from a non-relative, i.e. someone who is not your relative, such as a customer or supplier, are generally not taxable, regardless of their value.

Tips to Save tax on Diwali Gifts & Bonuses

If you want to avoid paying taxes on your Diwali gifts and bonuses, you need to consider these tax saving methods:

Claim exemption: If the value of your Diwali gift is up to Rs 5,000, you can claim exemption by showing the documents related to the gift.

Save tax on expensive gifts in this way: If your company is going to give you a gift worth more than Rs 5,000, then you can request them to structure the gift in such a way that you do not have to pay tax on it. For example, they can give you a gift voucher of up to Rs 5,000 and give the remaining amount as a bonus.

Choose these options instead of cash: Instead of cash, it would be better to give gift vouchers, gold coins, or any appliance. Because generally there is less chance of tax being levied on these as compared to cash bonus.

Donate to charity: If your company allows you to donate a part of your Diwali bonus to a recognised charity, you can claim a tax deduction for the amount donated.

Apart from these tips, there are a few other things to keep in mind when it comes to taxes on Diwali gifts and bonuses:

Source of the gift: If you receive a gift from a friend or a non-relative, then generally it is not taxable, whatever its value. However, if a relative sends you a gift, then it may be taxable if the value exceeds a certain limit. Some types of gifts, such as cash or jewellery, are more likely to be taxed than other gifts.

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The post Do I have to pay tax on Diwali gifts and bonuses? first appeared on Rightsofemployees.com.