Diwali dispatch closes 10 October 2026 — brief us now to hold production slots

Gifting as part of employee benefits

Gifting is one of the few benefits an employee physically takes home. That makes it unusually visible for the money - and unusually easy to get wrong.

Where gifting earns its place

Most benefits are invisible until they are used: insurance, leave policy, a wellness allowance. Gifting is the opposite. It appears in a house, in front of a family, with the company's name on it, and it does that on a fixed date everyone knows is coming.

That visibility cuts both ways. A gift that feels considered does more for sentiment than its cost suggests. A gift that feels like a box-tick does measurable harm, because people read it as what the company thinks the gesture is worth.

The occasions worth budgeting for

Festive - Diwali and Dasara

The largest round of the year and the one people expect. Budgeted per head, ordered once.

New joiner kits

A first-day box does more for early sentiment than almost anything else, and it runs on a standing order rather than a project.

Work anniversaries and milestones

Small volumes, high meaning. Usually a tiered set - one, three, five years.

Recognition and spot awards

Works best when the manager can trigger it without a procurement cycle, which is exactly what a standing portal is for.

Life events

Weddings, new babies, moving house. Low volume, remembered for years.

Exits and alumni

Rarely budgeted, disproportionately talked about afterwards.

What it costs to run, beyond the gift

The per-piece price is the visible cost. The hidden one is internal time - collecting addresses, chasing artwork approvals, reconciling deliveries, and answering "mine did not arrive" for a fortnight. On a 500-person festive round that quietly consumes several days of somebody's month.

That is the part worth outsourcing. The gift is a purchasing decision; the programme around it is operations, and it is the operations that make gifting feel like a burden.

Questions we get asked

Gifts in kind are exempt as a perquisite up to 5,000 rupees per employee per financial year in aggregate, under Rule 3(7)(iv) of the Income Tax Rules. Above that, the excess is taxable in the employee's hands. Treat this as general information and confirm with your finance team.

Generally no - Section 17(5)(h) of the CGST Act blocks input tax credit on goods disposed of by way of gift. Separately, under Schedule I, gifts up to 50,000 rupees per employee per financial year are not treated as a supply. Your finance team should confirm how both apply to your case.

A voucher is easier to administer and harder to remember. Physical gifts carry more sentiment; vouchers give more choice. A portal where the employee picks a physical gift within a set budget is the middle ground most companies end up wanting.

One order, split by delivery address, with a packing list per location. Home delivery to individual employees works the same way.

Talk through a gifting programme

Whether it is one festive round or a year-round calendar, tell us the shape and we will come back with what it costs to run.