Tds deduction

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 October 2014 Hi all...
my question is if in Kon Banega Karodpati (KBC) contestants are playing for charitable purpose which is exempted from tax (eg Prime Minister Relief Fund) then amt win or donated to such fund will be liable for TDS?? if not, then under which section they can claim benefit of non deduction if TDS???

Nikhil Kaushik

Nikhil Kaushik (Expert)

27 October 2014 if the cheque is being directly made to the credit of relief fund, then no TDS will be applicable as payment will never be routed through the contestant as the title of income will be overridden. (this is the normal practice)

if the payment is made to the contestant, then TDS will be deducted.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

27 October 2014 Ok sir... but under which sec they can get relief by non deducting TDS???

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

27 July 2025 Good question!

---

### When is TDS **not** deductible on winnings donated to a charitable fund?

* If the **payment is made directly to the charitable trust/fund** (like the Prime Minister's Relief Fund), **no TDS** is deductible because the amount never belongs to the contestant — it goes straight to the exempt entity.

* However, if the **payment is made to the contestant**, TDS must be deducted.

---

### Under which section can the contestant claim relief or exemption from TDS?

The **contestant can submit Form 15G/15H** (if eligible) to avoid TDS deduction on such income if the income is exempt under the Income Tax Act.

But more specifically, the exemption for the charitable donation would come under:

* **Section 10(23C)** — which exempts income of notified charitable institutions/trusts.

* Also, **Section 194N** and **Section 194R** (TDS on winnings) are generally applicable on winnings from lotteries, crossword puzzles, horse races, card games, and other games.

If the winnings are donated directly by the payer to the charitable fund (which is exempt under **Section 10(23C)**), the payer is not liable to deduct TDS.

---

### So, practically:

* **Direct payment to charity:** No TDS deduction needed.

* **Payment to contestant:** TDS deducted under **Section 194B** or **Section 194R** (depending on nature of winnings).

* The contestant can claim exemption or refund during assessment if the income is exempt.

---

Would you like me to help draft the exact wording or documents for claiming non-deduction or refund?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now