TDS on Awards

Save Share

This query is : Resolved

Anupam Jhavar (Querist)

24 December 2010 We are NGO for people aged above 55 and recently conducted an awards function to fecilitate the work of various senior peoples in their fields and gave them rewards in excess of Rs. 50000 each by cheque are these payments subject to TDS? Under which section?

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

24 December 2010 The section applicable would be 194B deduction of tax at source from winnings from lottery or crossword puzzle. This section includes all the games. The threshold limit is Rs. 5000/-.

Anupam Jhavar

Anupam Jhavar (Querist)

25 December 2010 But this is not a game and even there is no where mentioned in the Sec 194B about TDS on awards.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

27 July 2025 Good question! TDS on **awards given by an NGO** isn’t covered under **Section 194B**, which specifically deals with winnings from lotteries, crossword puzzles, or horse races.

### What applies here?

1. **If the award is a cash prize (not related to lottery/games):**
Normally, Section **194B** does **not** apply because it’s not a game or lottery.

2. **Possible applicable section:**

* **Section 194C** (payments to contractors) — generally no, because awardees are not contractors.
* **Section 194J** (fees for professional or technical services) — no, since it’s not for services rendered.
* **Section 194A** (interest) — no.
* **Section 194H** (commission/ brokerage) — no.

3. **What about Section 194BB?**

* Section 194BB applies to **winnings from horse races only**, so not relevant here.

4. **Section 194R - TDS on benefits/perquisites?**

* As of recent updates, **Section 194R** (introduced from FY 2022-23) requires TDS on benefits/perquisites received by employees or others. However, this is quite new and may not apply to awards given by NGO to non-employees in the past.

5. **Practical position:**

* Awards given as **gifts or recognition** without a contractual or professional service are generally **not subject to TDS**.
* If the amount is given as a **reward for a service or as professional fees**, then TDS under 194J may apply.

6. **However, if awards are given in cash or cheque exceeding Rs 10,000 as per Section 269SS/269T rules, that is a different issue related to cash transactions, not TDS.**

---

### Summary:

**No TDS liability** under sections 194B or 194J if awards are just recognition/rewards, not linked to professional fees or contracts.

---

If you want, I can help draft an explanatory note or check if any recent circulars clarify this. Would you like that?

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