Sir, I do not have the expertise to answer the querry of an expert. I can only share my opinion:- 1. Award is given as token of appreciation to a person's achievement in a particular field. It has nexus between skills of a person and achievement. Reward is for a contribution made by a person for a return. Compensation given can also be reward. 2. A Person receives awards for the Best Actor - award- appreciation of his skills and achievement in the field. 3. money received from Police for catching a robber- reward 4. Prize amount received in competitions -not an award.
Recognition and not monetary payment is the soul of an award. It needs to be renowned.For eg. Ashok Chakra, Gallantary Award etc., whereas prize amount is more important (rather than the nomenclature) in case of reward. In my view award/reward is taxable as income from other sources under the Income Tax Act. However following is the exemption u/s 10(17A): In case of award Any award instituted in public interest by CG/SG or by any other body and approved by C.G in this behalf In case of reward Rewards by CG/SG for such purposes as approved by CG in this behalf.