Tds on winning gift on gift coupons

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 November 2012 A gift coupon is given to a depositor who deposits Rs 5000/ in a scheme of the society. Out of 1000 gift coupons one depositor is selected in a draw for giving a gift of motor cycle costing Rs 40000/. Whether provision of Section 194 B are applicable and TDS will be deducted on Rs 40000/ @30% ?

Sunny Sonwal

Sunny Sonwal (Expert)
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05 November 2012 Yes, TDS would be deducted under section 194B because this is type of lottery winnings.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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22 November 2012 TDS will be applicable. However, There may be 2 situations:

1. TDS is separate from winning:

TDS = 40,000*30.9% = Rs. 12,360

2. TDS is part of the amount of winning:

TDS = 40,000*30.9/130.9 = Rs. 9,442/-

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