To use this feature follow these steps -

1. Setup this head in setup with the help of Application Administrator, refer to article Setting up salary heads for more details. This can be setup as a custom or as an adhoc payment head

2. If gift is to be included in the salary structure then it should be setup as a custom head, if it is to be paid on an adhoc basis without changing the salary structure then setup it up as an adhoc payment head

3. While running payroll update the value of gift paid to the employee as shown below

Gifts given through this process will be treated as non cash benefits and will be visible in
a) Tax free benefit tab on Review Output page, it will not come in Salary Register
b) Payroll Reports > Salary Reports > Benefit Payments option
c) Salary slips - but it will show on both Earning and Deduction side

Please note that if this head is used then there will be a gap in the figures reported in Form 16 Part A and Form 16 Part B. The figures of "Amount paid / credited" in Form 16 Part A will not match the total Gross Salary reported in point 1d in Form 16 Part B.