Prize from employer - taxable or not

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If a company conducts a speech competition in which all employees and outsourced workers are invited to participate. Prize distributed in cash in  such case will be taxable in hands of employee or not ?

 

Replies (7)

In my opinion it will be taxable in hands of employees under the head income from other sources. Gifts, Awards, Prizes etc are taxable except when awarded by specified institutions or by Govt.

Yes, the prize money will be taxable and TDS too might be deducted.

Is employer responsible for deduction of TDS from Salary of employees for such prizes or employees should themselves show it in their personal income tax return as other sources income.

Employer is not under obligation to deduct the tax. But employer should also consider income from other sources and house property as declared by the employee while deducting the tax. Here as he employer is aware of the income receivd by employees by way of prizes, hence to be on safer side employer should deduct the tax.

It will be taxable under other sources and tds will be deduct @ 30% under 194B

 

 

https://www.taxmanagementindia.com/visitor/detail_case_laws.asp?ID=239442

Dear Sir,

Happy New Year !!!

Can you Please let me know what is  examtion limit  amount of Prizes. 

 

Thnaks.

Pradeep

on PRIZES upto RS 10,000 TDS is not required to be deducted.

after that deduct TDS @ 10% on WHOLE AMOUNT

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