Are Diwali gifts, bonuses taxable. Gifts or bonuses from employers are taxed under Income Tax Act based on employees' income slab. Diwali gifts worth up to ₹5,000 from employers are exempt from tax, however, Diwali cash bonus of any value is taxable. Gifts from relatives are typically tax-free, regardless of value. Gifts from non-relatives exceeding ₹50,000 are taxable & categorised as 'Income from Other Sources'.