how much tds on money given for INR symbol

According to the provisions of section 194B, every person responsible for paying to any person, whether resident or non-resident, any income by way of winnings from lottery or crossword puzzle or card came and other game of any sort, is required to deduct income-tax therefrom at the rate of 30% if the amount of payment exceeds Rs.5,000.

Hence, the rate is 30% and the person responsible for deducting TDS is the person who is paying.

Regards

M R M

Hi Manu,

Though, Sec 10(17A) - gives power to the Government to exempt rewards in some cases, but I don't think Govt. will exercise its power in the present case, being a one time event.

I am not sure but an interesting thought came to my mind -

There are two things

1) Winning a prize money

2) Receipt/Income without consideration (i:e Gifts)

Interestingly their tax treatments have two differences-

>>>> "Winning" is chargeable at Flat rate of 30% where as "Gifts" are taxable as per slab of the assessee.

>>>> TDS deduction will be there in case of "Winning" u/s 194B but no corresponding provision in case of "Gifts" (except to Non residents)

Now, if the prize money (not necessarily exact amount) was announced prior to inviting applications then it can be categorized under "Winning" and accordingly what MRM has suggested above will follow. However, if this sum was given just as a "token of appreciation" then it should be categorized as "Gifts"

Wot say??

thnx to both of u...

aamir ..i also think it as prize money so tds of 30%.....but i thnk that gov. shuld atleast make this amt. as TF