With this tutorial I am going to show you how to draw a gift tag like the one below. Of course this tutorial isn’t going to teach you something that you are going to use everyday, but I believe it’s useful because learning to draw simple objects like that is going to help develop your Photoshop drawing skills and gradually move on to more complex objects.
I started by creating a new file 600*600 pixels. The first step is to add a few guides. I added a total of 8 guides like shown in the image below. The vertical guides are at 100, 350 and 450 pixels and the horizontal ones are at 200, 250, 300, 350 and 400 pixels.
Then take the pen tool and click on the highlighted points to create the gift tag outline.
Select the ellipse tool 
Check the “Subtract from shape area” option 
and draw a circle at the position shown at the screenshot below.
Our gift tag shape is now ready and you can save it as a custom shape by right clicking and selecting “Define Custom Shape”
and giving it a name
Now create a new document or open the document where you want to add the gift tag or of course you can continue working on the original one, select the custom shape tool and draw your gift tag. (select a dull color, I used #B9AF8D) You should have something like this.
Very nice…learned alot with this very simple tutorial.
Very nice work dude…keep it up
Couldnt find how to perform this:
“Check the “Subtract from shape area” option Subtract from shape area option
and draw a circle at the position shown at the screenshot below.”
Couldnt find how to do this correctly as well:
“Our gift tag shape is now ready and you can save it as a custom shape by right clicking and selecting “Define Custom Shape””