LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Can we claim refund of tds made on prize money

Balasubramanya (Deputy Manager Taxation) (33 Points)

14 June 2016

Hi I am Balasubramanya,

I have a query on Refund of TDS on Prize Money like - Winnings from Game shows on TV, Cross word puzzels & simillar types.

If the winner is a individual and his income from the regular source doesnt cross basic exemption limit under income tax, Then can he claim the refund of TDS made on Prize from winning a show by filing income tax Return.

For example : If A wins Rs.1 Crore from a game show & TDS made @ 30% Rs.30 Lakh on prize amount, but his annual income from regular source does not cross basic exemption limit of Income tax. In this case is he eligible to claim refund of TDS on prize money of Rs.30 lakh by filing ITR.

Reply
Follow
Share

10 Replies

CA Saurabh Singh (Practising Chartered ) (974 Points)
Replied 14 June 2016

Hello,

Yes you can claim refund as such type of Income is taxable under head "Income from other sources", and if you donot cross the basic exemption limit than you can claim for refund.

1 Like

CA MANISH BINDAL (CHARTERED ACCOUNTANT ) (535 Points)
Replied 14 June 2016

Section 115BB:-

(1)
This section provide that income by way of winning from lottary, crossword puzzles, horse race, card games and other games or any sort or from gambling or betting of any form would be taxable at flat rate of 30% plus surcharge if appliable plus education cess and secondary higher education cess

(2) No expenditure or allowance shall be allowed from such income

(3) Deduction under chapter VIA is not allowed from such income.

(4) Adjustment of basic exemption limit is also not permitted against such income.

Hence if TDS is deducted from such income @ 30% refund will not be given because such income is chargable to tax at the same rate on which such amount is actually taxable without applying basic exemption limit.

however such income comed under head from income from other souces.

Balasubramanya (Deputy Manager Taxation) (33 Points)
Replied 14 June 2016

Thank you Sourabh Sir,

Ok now I understood, but one more question has raised in my mind that if the winner income is below basic exemption limit then what is the necessity to deduct TDS on such persons Prize money. In this case TDS dedcuted by the source and on the other hand full Refund taken by the winner from IT dept. Purpose of the income tax is not fulfilled here I think.

Income tax department can give option like submitting some form of declaration (like 15G,15H) that my income will not cross basic exemption before entering to such game shows.

Balasubramanya (Deputy Manager Taxation) (33 Points)
Replied 14 June 2016

Dear Manish,

Thank you for the information.

CA Saurabh Singh (Practising Chartered ) (974 Points)
Replied 14 June 2016

Hi Balasubramanya,

I would like to correct myself sec 115BB has placed such income on the bracket of special tax rate, hence the benefit of basic exemption limit could not be availed. I just checked that in the ITR.

Secondly the TDS limit is 10,000 below which no TDS liability but at this at above TDS has to be deducted @ 30%

Balasubramanya (Deputy Manager Taxation) (33 Points)
Replied 15 June 2016

Dear Sourabh Thank you.

Thakur Shanker Singh (TAX & GST-Practitioner ) (119 Points)
Replied 15 June 2016

Ver Good ,

Manish,

1 Like

Pratick Datta (-) (71 Points)
Replied 16 June 2016

Agree with Manish.

1 Like

amol pagar (As Article Assistant) (22 Points)
Replied 16 February 2018

I get MNC tender for providing 10 tractors. We hire 10 tractor from others and provide services to NMC.. Plz help me for IT Return whether 44AD or 44AE

Sarawana Vel (2 Points)
Replied 15 April 2020

I have won Rs.150000 form DREAM11 and automatically Rs.46500(30.9%tax) TDS has been deducted from the winning amount, Can I get the refund of deducted TDS amount Rs.46500 bcoz my total taxable income is within the limit of 500000 only.please help me with ur suggestions