Short answer: Diwali gifts for employees should stay within the ₹5,000 tax-exempt perquisite limit and favour practical or festive items, while Diwali gifts for clients can run higher (₹2,000–₹10,000) and lean artisanal to build the relationship. Meru Gifting briefs the two lists separately for every corporate order.
Updated September 2026.
Why should the employee and client Diwali gift brief be different?
Employee Diwali gifts sit inside a tax and headcount logic — many recipients, a defined budget, and a ₹5,000 per-employee-per-year tax-exempt ceiling under Income-tax Rule 3(7)(iv). Client Diwali gifts sit inside a relationship logic — fewer recipients, higher per-piece budget, and a stronger emphasis on the gift feeling personal rather than distributed at scale. Meru Gifting treats these as two separate briefs even within the same order.
Kamal Diya Metal Lotus Glass Tealight Holder₹499 · MOQ 50 branded
Deepam Brass Oil Lamp Set of Two₹1,999
Kandeel Leather-Handled Jaali Lantern Pair₹2,050
Mangal Kalash Brass Kalash with Metal Toran₹2,399
Swarn Jaali Photo Frame (Gold Lattice on Marble)₹2,799
How should the employee Diwali brief and the client Diwali brief compare?
The table below lines up the two briefs across the criteria that shape a Diwali gifting plan.
| Criterion | Employees | Clients |
|---|---|---|
| Typical budget per person | ₹500–₹5,000 (tax-exempt ceiling) | ₹2,000–₹10,000 |
| Recipient count | Often 50–5,000+ | Often 10–200 |
| Tax treatment | Exempt up to ₹5,000/year as perquisite; excess taxable | No personal perquisite limit; input GST credit still blocked |
| Item style | Practical, festive, uniform across the list | Artisanal, displayable, individually notable |
| Personalisation | Company logo, sometimes name | Company card, minimal or no logo |
| Delivery | Office or home, bulk logistics | Often couriered directly to the client's office or home |
| Order timing | 4–6 weeks ahead, single batch | 4–6 weeks ahead, sometimes staggered by account tier |
Which list should get the higher budget — employees or clients?
Client Diwali budgets are usually higher per person because there are fewer recipients and the gift carries relationship weight; employee budgets stay disciplined around the ₹5,000 tax-exempt ceiling because the list is large and cost predictability matters more.
Employee Diwali gifts
- ₹500–₹5,000 to stay within the tax-exempt perquisite limit
- Practical or festive, uniform across the list
- Large headcount, bulk logistics
- Company logo branding common
Client Diwali gifts
- ₹2,000–₹10,000, no personal tax ceiling to plan around
- Artisanal, individually notable
- Small headcount, higher touch delivery
- Minimal branding, company card instead
Which Diwali gift fits your budget for each list?
Use the tabs to see what suits each audience at three budget bands.
Under ₹500 suits a large employee list — a Kamal Diya Metal Lotus Glass Tealight Holder (₹499) works well as a uniform, festive token.
₹500–₹1,500 is a good mid-tier for senior employees or smaller client lists — pair a diya set with a small hamper.
₹1,500+ suits key clients or leadership — the Deepam Brass Oil Lamp Set (₹1,999) or Swarn Jaali Photo Frame (₹2,799) both work as standalone client gifts.
Does GST or tax treatment differ between employee and client Diwali gifts?
Employee gifts up to ₹5,000 per person per financial year are exempt as a perquisite under Income-tax Rule 3(7)(iv); the excess is taxable in the employee's hands. For both employee and client gifts, input tax credit is blocked under Section 17(5)(h) of the CGST Act since gifts are excluded from ITC, though GST invoices are still issued for accounting. Confirm the exact treatment with your CA.
When should both lists be ordered?
Order both employee and client Diwali gifts 4–6 weeks ahead of the festival, since artisanal client pieces from Meru Gifting's Dharohar network can take longer than standard branded employee stock. Diwali 2026 falls in early November, so briefing by late September gives enough buffer.
Should employee and client Diwali gifts be the same item?
Not usually — employee gifts favour practical, budget-consistent items across a large list, while client gifts favour artisanal, individually notable pieces at a higher per-person budget.
What is the tax-exempt limit for employee Diwali gifts?
₹5,000 per employee per financial year is exempt as a perquisite; anything above that is taxable in the employee's hands, per Income-tax Rule 3(7)(iv). Confirm with your CA.
How much should a client Diwali gift cost?
Client Diwali gifts typically run ₹2,000–₹10,000 depending on the account's strategic importance, higher than most employee budgets.
When should Diwali gifts be ordered for both employees and clients?
4–6 weeks before Diwali, to allow time for sourcing, mock-up approval and pan-India or international delivery.
Planning separate Diwali lists for employees and clients?
Share both headcounts and budgets and we'll put together two shortlists.
