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Prize money to employees
My company conducted a concept challenge within the employees. if that concept likes the top management, company will gives prize money to employees who has given the best concept.
My question is:
is this prize money attracts TDS?
is this prize money comes under salary part?
if not, how we record in books?
Replies (4)
i think it should be made part of salary and TDS should be deducted accordingly
Section 194BB doesn't attract in this case, treat it as part of salary and deduct tds accordingly.
It is not earned against his work/duty. its given apart from salary. so how we deduct TDS on this?
can't we show as something other than salary?
The amount received is attributable to his skill/knowledge in the course of his employment. Moreover, there also exists an emoloyer-emoloyee relationship. These type of incentives are being provided in normal course frequently. So, it's a taxable perquisite.
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