Is gift received from employer less than Rs.25000 is taxable?

That depends on whether it is truly a gift. A gift received from an employer is exempt. However, these are difficult to sustain under challenge by the tax authorities as they will argue that it is just additional compensation. There are several conditions laid down in determining a real gift under indian jurisprudence. Check out the legal position and doent your gift carefully. Consult a CA, but be prepared for the IT department to challenge that.