Olympic medals taxable or not

What I think is the players will not pay any tax on the medals they will receive in the form of awards and rewards for their performance in Olympics in India (In USA Medals are taxable).

yeh medals and any type of trophies are not taxable..

what will happen if reward money is  given by individual or corporate to winning athlete in india ?Sec (10)(17A) and Sec 56 (2)(v) cover contribution from central govt , state govt and Trust ,institution registered under sec (12)(AA) respectively .Our indian medalist PV Sindhu and Sakshi Malik received 1.01 lakh from Salman Khan(Individual).What will be tax treatment in this case ?

AS per Section 10 (17A) of the Income Tax Act, the following income is not included in the total income:

any payment made, whether in cash or in kind,-

(i) in pursuance of any award instituted in the public interest by the Central Government or any State Government or instituted by any other body and approved by the Central Government in this behalf; or

(ii) as a reward by the Central Government or any State Government for such purposes as may be approved by the Central Government in this behalf in the public interest;

The Central Board of Direct Taxes (CBDT) in a Circular dated 20.01.2014 clarified that in terms of provisions of clause (17A) of Section 10, Central Government approves awards instituted by Central Government, State Government or other bodies as also the purposes for rewards instituted by Central Government or State Government from time to time. Tax exemption can be sought by eligible persons in respect of awards or rewards covered by such approvals.

Now, the Central Government has approved any payment made, whether in cash or in kind, as a reward by the Central Government or a State Government to the medal winners of the Olympic Games or Common Wealth Games or Asian games.

Therefore, they need not pay any income tax on the awards given by governments.

However, they may have to pay income tax on the awards given by private individuals and non government organizations.

https://indiankanoon.org/doc/26127240/

Income Tax authorities had tried to tax the rewards that were received by Abhinav Bindra for his gold medal. Bindra had challenged this decision stating that he does not undertake the sport for income and hence this money is not taxable.

As a result of this precedent, all rewards, given by governments, trusts, private bodies, as well as individuals to Olympic players, are non-taxable.

Prizes or rewards are ‘capital receipt’ in hands of NON-PROFESSIONAL SPORTS PERSONS like  Abhinav Bindra.

Tribunal found as undisputed facts that he was an amateur and not a professional sportsperson. Tribunal has also observed that shooting as such is not a sports of professional nature. 

• AB claimed that he was an amateur sportsperson and hence gifts/awards and prizes won by him are not income in terms of CBDT Circular No.447 dated 22-1-1986.

• As per AO Circular No.447 was inapplicable in view of amendment in section 10(17A) and insertion of section 56(2)(v).

• AO allowed exemption in respect of rewards/prizes/gifts from the government, local authorities and trusts/funds recognized under section 10(23C) or registered under section 12AA by relying on the specific provisions about non-applicability of section 56(2)(v).

• The AO included in income under section 56(2)(v) gifts, awards, prize etc (by whatever name called) received from others that is corporates, individuals etc.

• A capital receipt cannot be included in income for the purpose of levying tax on income. The assessee AB has good case on issue of ‘capital receipt’. However, it is likely that the revenue will challenge the Tribunals order before the High Court on the basis of presumption of income u/s 56. Therefore, AB is advised to challenge the provisions of section 56 which deems certain receipts as income though they are capital receipts.

  In an appeal Court will not consider aspect of validity of a provision. Therefore, a challenge to amendments of IT Act, which deems certain capital receipts as income is a prerequisite to win the case ultimately.