Some common notions are pretty convenient to believe. But do they substantiate any truth? We reveal some common myths of corporate gifting that even though believed do not hold much veracity.
MYTH 1: You don’t have to pay for the gifts you receive–
FACT: Incentive received from the company may be taxable in the hands of dealer/business associates business income.
The donor is generally responsible for paying the gift tax. Under special arrangements the do-nee may agree to pay the tax instead.
MYTH 2: Larger the company more expensive and fancy the gift should be-
FACT: Larger firms have specific rules related to gifting. Businesses must tread carefully as a corporate gift as corporate gifting has several legal, ethical and practical questions attached to it. Sometimes gifts maybe turned down if they are too expensive.
MYTH 3: As the presenter you are not going to be taxed-
FACT: This rule is only applicable if you do not exceed the gift tax exemption.
MYTH 4: Indians prefer bright colours, white and black shouldn’t be used
FACT: According to a 2014 survey by Forbes-India there was no proof or evidence to disapprove the claim. In fact both Indian and Foreign brands seem to have a preference for red and blue.
MYTH 5: Uniqueness is the key.
FACT: Givers try to find obscure and “hard to get” gifts. Research shows that the recipients would really like gifts that are usual and expected. A twist to that with packaging can definitely work through.
Corporate gifting has evolved and so have the stories generated by it. Here we have tried to bust some common misconceptions. Hope these help you the next time you go gifting for the corporate sector.