Gift/ Prize

yes winnings in both kind or cash will be subject to tax @ 30%

If it is in kind, prize will be handed over only on satisfaction of income tax dues by the recepient without any exemption. Full 30% + cess etc. Therefore do not go overboard if you win any prize in some Television Game show. First of all an overpriced value like a printed MRP will be considered for payment of taxes. It is always a raw deal.  Normally following problems occur:-

1. The organiser may demand the tax amount from you. You may not get the prize in hand and he may not deposit the money or you may get prize in hand and he may not deposit the money with IT.
2. You may pay the tax yourself but may not get the gift for some reason or the other (usually the excuse is non availability and they try to palm off something else instead).

The biggest problem is you never get a sealed packed piece of the gift item. It could be used, maybe as a demo piece. If it is a car it could be used with temporary number plate, meter reset to zero, polished, cleaned and given to you.

30% tax is as good as 42% of the value of the prize in kind. If over priced value is taken then you may get something with a few months of warranties gone or worst warranties not transferred to second owner as it is valid only for the 1st owner,the organiser.

I suggest not to participate with an intention of winning a prize in kind. It is better to buy the product new with an auto loan or consumer loan and hammer for the maximum discounts possible.  Always go for cash prize in lieu of anything in kind.

The company will give u such a gift after duducting tax i.e. first the company will receive the amount of tax from u & then u will get that vehicle

sunil