Gift to actors

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 January 2015 My Question is my company is going to award / gift to the famous personality on a TV show. It is not by way winning of Prize etc., It is just to honor him for his achievements.

It is treated as an other source income in the hands of the receiver.

In the hands of giver:
It can be claimed as an expense

Whether it is tax deductible?
if yes under what section

Amol S Joglekar

Amol S Joglekar (Expert)
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23 January 2015 The payment to actor can either fall under 194J or 194B
(See try to understand the simple point.... since you are a payer.. ok?
Needless to say, when payment is to some celebrity, it is in million. Can you afford to loose the deduction in your P & L merely on account of non TDS?...It is better to make TDS and give)
Your views please...

Querist : Anonymous

Querist : Anonymous (Querist)

23 January 2015 It is not a Prize money for winning or otherwise to fall under 194B and it is just reward to him for his personal achievements. He is not going act for my company to fall under section 194J.

As it is income to him and expenses to us i am afraid of disallowance

Amol S Joglekar

Amol S Joglekar (Expert)
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23 January 2015 That is what I said. In other words, RISK REWARD ratio has to be in your favour.

No body is going to disallow the expenses, if you make the TDS.

On the other hand, there is every likely hood of the expenses being disallowed for want of TDS......

Take a call in the best interest of disallowability.

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