Income from prize earnings

work is worship (Service) (2728 Points)

10 July 2012  

HI

 

Agreed any Prize winning is subject to flat tax of 30 % ( + EC). 

Now a friend of mine has received a Bumper prize worth  INR 85000/-, the company has paid my friend after deducting TDS + EC.

The total taxable incomd including this prize money is less than taxable limit. 

My question is 

1.) Can he claim exemption for "Earnings from Prize money"

2.) Can he claim the TDS deducted.