Non cash gift

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whether a consumer goods like fridge tv worth Rs.100000 win in a tv contest is liable to tax

Replies (3)
Yes, it is subject to tds also.

Yes, Section 194B is attracted. Winnings from TV Shows are liable to TDS in this section. Rate = 30% + EC + SHEC.

According to section 2(24) definition of income includesany winnings from lotteries,crossword puzzles, races including horse races, card games and other games of any sort or from gambling or betting of any form or nature whatsoever.  

card game and other game of any sort" includes any game show, an entertainment programme on television or electronic mode, in which people compete to win prizes or any other similar game.

Winning of consumer goods in a television programme would fall under the definiton of " card game and other game of any sort.

Aforesaid income is taxable under section 56 of Income Tax Act under the heading " Income from Other Sources"

According to section 58 of Income Tax Act "no deduction in respect of any expenditure or allowance in connection with such income shall be allowed under any provision of this Act in computing the income by way of any winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or from gambling or betting of any form or nature, whatsoever :"

Hence deduction under Chapter VI-A is not applicsble for such income.

Accoring to section 115BB tax at the rate of 30% is chargable on such income.

Accoridng to section 194B, tax will be deducted at source @ 30% from such income if the value exceeds Rs.10,000

 


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