LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Classification of IT treatment

B RAMA KRISHNA (Assistant Accounts Officer (Retd) in Electricity Department ) (106 Points)

23 September 2019

l would like to know the treatment in IT for the following.
Amount earned and donated to any relief funds in Quiz programs.
Ex. Celebrities in KBC(Kaun Banega crorepati) and intend to donate for relief funds or for development.

Reply
Follow
Share

4 Replies

CA ABHAY GUPTA (Practice) (3230 Points)
Replied 23 September 2019

First the income will be taxed as income from other source, the flat rate is 30% , if they earned income any other head of income the same will be reduced with the amount of donation eligible under section 80G. in short the winning amount is not eligible for deduction.

Kapadia Pravin (17249 Points)
Replied 23 September 2019

Mostly in such cases KBC pays directly to Relief funds , 80G NGO's Trusts etc.

Suresh Thiyagarajan (Student) (3986 Points)
Replied 23 September 2019

1. TDS will be deducted on the amount of winning u/s 194B @ 30% before remitting the same to the winner.
2. If you have received the amount and subsequently donated the same, based on the fund to which donation is made deductions will be available on your income.
3. But if the same is donated directly, I think there is an exemption to the whole amount donated to such trust or institution (which qualifies for deductions).
4. However, I could not find case laws or situations explaining the same.
Please correct me if the above solution has an alternative view.

B RAMA KRISHNA (Assistant Accounts Officer (Retd) in Electricity Department ) (106 Points)
Replied 24 September 2019

Thank you very much for the respondents.
please clarify further total amount should be considered as income and slab burden effected on total income borne by individual.