I am an Indian resident. I recently won an online hackathon from a US based company. The challenge was to build an AI based software project using the company's AI offerings. The top 3 projects of hackathon were awarded prize money based on innovation, completeness, usability and efficiency of the project.

The US based company is asking me to fill W-8BEN form which has a tax treaty benefit section, not filling it would lead US company to withhold 30% tax by default. Which Article of India-US tax treaty is applicable here so that tax treaty benefit can be availed leading to minimum/no tax withholding by the US company?

Article 15- Independent Personal/Professional Services (includes software development services)

Article 23 (Para 1 & 3)- Other Income

The next consideration is- what would be the domestic tax treatment of the amount in India?
Possible relevant sections to explore to ensure compliance: Section 2(24), Section 115BB, Section 115BBJ.

Section 2(24) states that "card game and other game of any sort" includes any game show, an entertainment programme on television or electronic mode, in which people compete to win prizes or any other similar game.

This includes skill based shows like Indian Idol and Dance India Dance. KBC is also clearly a game show and included in this. But a hackathon isn't an entertainment programme, a game show or a game.

Section 115BB also relates to winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting of any form or nature whatsoever.
Section 115BBJ specifically relates to and overrides 115BB for "online games”, defining them as games that are offered on the internet and are accessible by a user through a computer resource, and includes games of skill or chance or both.

This is widely construed to be encompassing games such as rummy, poker and fantasy sports etc.

Indian tax law leaves the interpretation of a game to common sense and doesn't formally define it. Hackathon isn't a game but an innovation challenge with a software deliverable/demo. It is an intellectual/technical competition. There is no wagering, gambling, or speculative element. The result is based on skill, coding, innovation, and judged by a panel, not algorithms or randomness.

What would be the right tax treatment/classification of this income for W-8BEN form's tax treaty section and domestic (Indian) filing?
For India, would this be added to total income and taxed at slab rates or special sections?

If a employee receives Leave Encashment from previous employer after resignation to join another employer. What is the taxability rule of the same under old and new tax regime sir ?

gold received by will by inherited are taxable when its sold ? Gold Qty 300 gms

I had filed the Income Tax Return for the financial year 2022–23 (AY 2023–24) under the AOP status, as the trust is not registered under Section 12A of the Income Tax Act .
At the time of filing, due to a technical issue on the Income Tax portal, the return could not be uploaded unless the option “Whether the trust has business income” was marked as “Yes”, even though the trust does not have any business income . Since the taxable income of all its trustees is below basic exemption limit return has been filed as AOP at normal rate ignoring the warning trust with business income should go for AOP MMR .How ever we received demand notice calculating tax at AOP MMR rate.
We now wish to know whether we can file an Updated Return (u/s 139(8A)) to correct the business income option to “No”, and whether doing so will have any impact on the tax liability or lead to any reassessment or additional compliance.

Sir,

AS NRI an Individual has earned interest income of Rs 240000 on his NRO-Saving Banik a/c and NRO-FDs during FY2024-25 (AY2025_26 ) i.e current assessment year. Bank has already deducted TDS @30% under Section 195 of ITax . He has no other income in India.
Now following query -

1. Is this interest income is to be taxed at slab rates OR is to be taxed at Any Specific Special Rates ( if applicable).

2.Will he be entitled to refund of total TDS by filing ITR-2 ( as his India Income is well below Taxable Limit )

3. He is having a residential flat in India and which is self-occupied (Not Rented and No rental income ). Will he still be required to fill-up House Property Income Schedule OR can he skip filling this HP Income schedule as there is income under HP head.

Pls clarify pointwise and help to remove any doubt.

Hello
Could you please advise on the following:
If we do not deduct TDS on professional fees, contractual expenses, foreign payments, and similar items, the expenses will be disallowed in our financials as well as in the Income Tax Return (ITR). If we deduct the TDS in subsequent years, the expenses may be considered allowable.

My question is: we already disallowed the expenses last year, and now we are deducting the TDS. Is it necessary to calculate and pay interest on the delayed deduction of TDS? Is there any way to avoid the interest implications in such cases?

Also, which year TDS return we have to report these delay deduction?? whether it is deducted FY or suppose to be deducted FY??

Dear Sir,
I am Senior Citizen Age 65yrs. My Total Income for FY-2025-26 will be as under. Pension 720000, interest on Deposit-700000, STCG-Equity-expected-400000 Total Income Rs, 1820000/-. Last Financial Year TDS deducted on Interest Income was Rs. 110000/- . This year may be Rs. 120000/- . I have not yet Submitted form 15G. As New Tax Regime ,No Tax up to Income Rs. 1200000, Can I Submit Form 15G now to avoid TDS deduction on Deposit. and pay Advance Tax Qty on STCG income.
Regards,
Ramesh Lute

In a case involving exemption under Sections 54 and 54EC of the Income Tax Act, the first instalment for the sale of the original asset was received before the first instalment was paid towards the new residential property. However, the registration of the new property was completed before the registration of the sale.

1. Can this sequence be considered as "part performance" under Section 2(47)?
2. Additionally, if there is another unit in the same apartment building (e.g., the floor above the purchased unit) being bought simultaneously, can both be treated as a single residential house for the purpose of Section 54? (Ref: K.G. Rukminiamma v. ITO)
3. If yes, and there is still a balance capital gain, can the remaining amount be invested in Section 54EC bonds for further exemption?

Would appreciate expert insights on the above.

My client is a salaried employee of an IT company in Bangalore.
He did some moonlighting work for another company and received payment of Rs 3,50,000 during the FY 2024-25. They deducted TDS u/s 194JB. Can I claim some Expenditure against this income ?

DEAR EXPERTS,

I HAVE AN ISSUE WHILE VALIDATING THE INCOMETAX RETURN AS ACCOUNT TYPE ERROR IN SOME CASES. EVEN AFTER REVALIDATE THE SAME.
SO PLEASE CLARIFY IT.