Competition gifts- taxable or not

Sec 115BB states that total income of the assessee includes any income by way of winning from any lottery or crossword puzzle or race including horse race or card game and other game of any sort or from gambling or betting of any form, tax shall be chargeable u/s 115BB at the flat rate of 30% on such income under the head Income from other sources.

The company should actually deduct TDS @ 30%. But they are masking the prize amount by reimbursements to save on TDS which is incorrect.

Yes, TDS is necessary.
 

this is not of betting type. it is insurance business. company floats a competition and reward the winning personnel. i give under one illustration

slab                                        award

50000/- premium                       1500

100000 premium                     bag pack bag            worth ...3000

1000000premium                        byke ..worth  60000

Here the winner purchases byke or worth article of 60000/-. and submits the bill.. now company deducting tds...if the company provides byke not charging anything..

pls do examine and let me know

My answer is still the same

Dear Mr. Nakula

in your case section 194 D is applicable and it says that\, "Any person responsible for paying to a resident any income by way of remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance) shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier,

TDS rate is 10% 

AND if company does not deduct tds at the time making reward in form of bike than they are at fault.