TDS on Lottery/ Draw in kind

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This query is : Resolved

Nipesh Garg (Querist)

13 January 2009 Hello friends,

I am putting written contex of mail received from my client, he received from a very gud Airlines.....

Congratulations!
It gives me great pleasure to inform you that you are a proud winner of BlackBerry Smartphone Pearl under the 15th Anniversary Promotion launched by XXXXXX Airways.

Since the promotion comes within the purview of section 194B of the Income Tax Act, 1961, you would be required to pay Tax Deducted at Source (TDS) on your prize which is Rs. 7725/- (i.e. 30.9 % of Rs.24999/-). On payment of the tax we request you to furnish us a copy of the demand draft and the tax paid challan for our records alongwith your (a) Full Name, (b) Residential Address, (c) Contact Details, (d) PAN Card Copy and (e) Postal address (where you would want the prize to be sent)

Now the thing is that how can my client deposit TDS and/ or the other way to deal with this kinda thing from such a reputed airlines

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)

13 January 2009 TDS has to be deducted @33.99% and you will receive the amount after deducting the TDS.. If you are the promoters then TDS has to be credited to The Cental Government

CA Chaitanya

CA Chaitanya (Expert)

13 January 2009 First of all confirm the mail that it is original one and not a fake mail.

CA Chaitanya

CA Chaitanya (Expert)

13 January 2009 If the mail is true one, then you need to pay the TDS amount to such person and obtain Form 16.

Nipesh Garg

Nipesh Garg (Querist)

14 January 2009 No u can`t understand the query

It is so that they airlines is saying that we need to deposit tax and provide them the challan.

Now i find it difficult to understand how to do that