Do i need to pay tax?

Hello everyone,

 

New here and would like some advice on if I need to pay any taxes and steps I need to follow.

 

Here's my scenario:

One of my distant relatives won one lakh rupees from a TV game show. She's a housewife and naturally doesn't have any source of income.

I'm a student, and earn very little from offering private tutions to children. I earn approx. Rs. 50,000/- per annum. In short even if we add the prize from the TV game show, we both are below the taxable limit of 2 lakhs.

 

In short, here are my questions:

1. Do I/my relative need to pay any taxes after the TV show winnings?

 

2. If the answer to the above question is yes, will it be TDS or do we need to pay it ourselves? What other things do I need to keep in mind and be aware of while proceeding with receiving of cheque?

 

3. My relative wants the cheque in my name due to some personal problems. Is that possible?

 

 

Thanks and regards,

 

Bhanu

Replies (21)

game show will deduct 30% as TDS and thereafter you have nothing to do, but stay in peace:) unless your personal income does not exceed 2 lacs/ interest on bank fixed deposit does not exceed 9000( from 10000 they will start to kill you brutally by deducting 20%) you dont have to take headache about incometax.  

Many thanks for the answer! 

 

So, the cheque she'll receive will be of Rs.70,000/-. Is that correct? 

In such a case, what does she have to do? Are the channel people supposed to give her some sort of certificate or something else that says she already paid the tax? If yes,what is she supposed to do with the certificate? (I mean she's a housewife, so she doesn't earn anything, so she too doesn't have the problem of filing tax every year.) And what if the channel people don't give her the certificate? (They might use some excuse, like, "you don't earn, so no tax, no certficate necessary" or something even more odd.)

Or is there some other method?

 

Just wondering, is it safe for me, if my relative gets the cheque in my name? I mean she said she had some personal problems... If she gets the cheque in my name, is there any chance of me running into some trouble?

they will issue a tax deduction certificate, and now this 70000 is tax paid casual income, and no need to file return etc. 

even if the channel refuse to issue certificate , they will issue a letter for short payment of 30000, stating that its deducted and paid to incometax under their TAN number, that would suffice. 

no issue to get cheque in any name as the tax is already deducted / paid. 

 

ok... looks like my aunt put me in serious trouble.sad
 
She played the game using my name and her details. All the interviews and photoshoots are in my name but she's there in the photos and the videos as me. Simply said everywhere it's my name and her photo and details...
 
What now? Am I in trouble or she? What should I do now? Shall I let her take the cheque in my name or tell the channel the truth? I'm at my wit's end now. Kindly advice as early as possible. I don't want to end in trouble coz of someone else's problems. Is it legally a crime? If yes, who's at fault, me or her? Please advice...

 

getting a cheque in your name on which tax is already deducted / paid will not put you in any trouble, be relaxed.

Feeling slightly relaxed now. Thanks again!

 

But what about the identity change? I don't mind her getting the cheque in my name, nor that she has posed in front of the media (print and tv) as me. I know her pretty well. In fact, she wants me to accompany her to take the cheque. But I don't want either of us in trouble, not only in terms of tax, but in any other legal way. Any chance of her or me ending in trouble? If yes, what do I do to avoid legal troubles?

if the paying party has no trouble in issue of cheque, then why you are taking headache?

even if such amount is routed to you, then you have clear voice that it is gift to you from aunt , and its not taxable :) at all you are well below the taxable exemption limit.

I assume paying party means the channel, right? Is there any chance of the channel people refusing to pay or take any legal action as she used my name instead of hers? That's the part I'm worried most about.

 

And you are right about the gift part. She actually is gifting me 10% of the amount that gets deposited in my account. So technically, it involves my benefit as well.

Just another question, if my aunt says she wants to gift me the entire amount, will the 30% be deducted or not?

as you are nowhere between channel and winning prize, except that money is transferred to you, so why you are taking headache? if channel refuse to pay then her money is under trouble , not yours:) and if the money comes to you then its tax paid at source, 

 

in both ways you are in no trouble at all, 

whatsoever is your internal agreement, is not the headache of department, department just looks that tax is paid or not on the money so won:) and its liability of channel to deduct and pay the same.

for any reason or gift, even to charitable trust, the channel has to deduct the tax. unless the charitable trust produce certificate of non deduction.

There are two reasons for me to worry:

 

1. She recveiving the money means me receiving at well. As described earlier I'm going to receive 10% of the amount deposited in my account. So I'd prefer if she receives it. ;)

 

2. I don't want her to end in trouble either as she is emotionally quite close to our family

we can discuss the tax concepts only :) balance is diff for person to person :)

Understood... :)

Simply said whatever whatevens 30% is gonna get deducted. 

The channel people called my aunt some time back telling that they will again to inform her the time and venue, where she'd be receiving the cheque... Lets hope all goes well.

 

I'll keep you guys updated. Meanwhile, if I have any more questions, I'll be back.

 

Thanks a million times for your help and advice. :))

Here again...

 

So we got the cheque yesterday without any problems... Oddly, the channel people didn't deduct any TDS or any tax, neither they gave any tax deduction certificate. The cheque is still in my name, so naturally, all worries are mine again. So, how do we submit the tax? Neither me nor anyone else in our family ever won anything in any game show, so all of us are kind of clueless here. Therefore, I'd like advice in baby-step manner (like go in so and so department, ask the .... person for the specific kind of form called..., go to another department........... and so on.).

 

Thanks. :)

no need to worry again, as your income alongwith this cheque again is below taxable limit, 

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