Can we claim refund of tds made on prize money

Hello,

Yes you can claim refund as such type of Income is taxable under head "Income from other sources", and if you donot cross the basic exemption limit than you can claim for refund.

Section 115BB:-

(1)
 This section provide that income by way of winning from lottary, crossword puzzles, horse race, card games and other games or any sort or from gambling or betting of any form would be taxable at flat rate of 30% plus surcharge if appliable plus education cess and secondary higher education cess

(2) No expenditure or allowance shall be allowed from such income

(3)  Deduction under chapter VIA is not allowed from such income.

(4) Adjustment of basic exemption limit is also not permitted against such income.

Hence if TDS is deducted from such income @ 30% refund will not be given because such income is chargable to tax at the same rate on which such amount is actually taxable without applying basic exemption limit.

however such income comed under head from income from other souces.

Thank you Sourabh Sir,

Ok now I understood, but one more question has raised in my mind that if the winner income is below basic exemption limit then what is the necessity to deduct TDS on such persons Prize money. In this case TDS dedcuted by the source and on the other hand full Refund taken by the winner from IT dept. Purpose of the income tax is not fulfilled here I think.

Income tax department can give option like submitting some form of declaration (like 15G,15H) that my income will not cross basic exemption before entering to such game shows.

Dear Manish,

Thank you for the information.

Hi Balasubramanya,

I would like to correct myself sec 115BB has placed such income on the bracket of special tax rate, hence the benefit of basic exemption limit could not be availed. I just checked that in the ITR.

Secondly the TDS limit is 10,000 below which no TDS liability but at this at above TDS has to be deducted @ 30%

Dear Sourabh Thank you.

Ver Good , 

Manish,

I have won Rs.150000 form DREAM11 and automatically Rs.46500(30.9%tax) TDS has been deducted from the winning amount, Can I get the refund of deducted TDS amount Rs.46500 bcoz my total taxable income is within the limit of 500000 only.please help me with ur suggestions