Tax treatment for gift received in a scratchcard

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Sanjay (Querist)
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02 January 2012 How the Tax treatment will be done for Gift received from a retailer’s scratchcard scheme?
I received a mobile phone (Blackberry) from TATA Motors in FY 2008-09. Before delivering the gift, the company collected TDS amount of approx 30% of the phone value. While filing for Income-Tax I did not add it to the additional source of income assuming it’s not some cash I’ve received and the TDS is already being paid for the gift item. Wanted to validate whether this was the right approach.
I’ve received an enquiry from IT Dept asking for explanation, that’s why seeking expert opinion on this forum. Would appreciate guidance on above.
Thanks,
Sanjay

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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02 January 2012 It is to be shown under the head income from other sources vide Section 56(1)(ib).
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You may explain that as TDS has already been deducted at the max. rate and as such you were not required to pay tax on that item. As there is no intention of tax evasion in this matter, your explanation may be accepted.
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Sanjay

Sanjay (Querist)
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02 January 2012 Paras, thanks a lot for your expert advice.

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