Tax for pize winning

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Antony

Manager

20 Points Posted on 03 October 2024

I won a scooter in a lucky draw. I can have the scooter or an equivalent of Rs. 75000/-.

My question is whether any tax will be deducted at the source.

Thanking you.

Antony Kaitharath

Replies (2)

Quick Summary

If you win a prize in a lucky draw, like a scooter worth Rs. 75,000, it's considered taxable income in India. Choosing the scooter as an asset means no tax is deducted at source, though you might face wealth or property tax later. However, if you opt for the cash equivalent of Rs. 75,000, the organiser may deduct 30% TDS (Rs. 22,500) if the prize exceeds Rs. 10,000. It's advisable to consult a tax professional for personalised advice.

Rama chary Rachakonda

Master in Accounts & high court Advocate

20 Points Posted on 03 October 2024

Congratulations on winning the scooter! As per Indian tax laws, winnings from lotteries, game shows, or lucky draws are considered income and are subject to taxation. However, the tax treatment depends on the nature of the prize. In your case, you have two options: 1. Take the scooter (asset) 2. Receive an equivalent cash prize of Rs. 75,000 If you choose the scooter, no tax will be deducted at source, as it's an asset. However, you may need to pay wealth tax or property tax on the scooter's value. If you opt for the cash prize of Rs. 75,000, the organizer may deduct tax at source (TDS) as per the Income Tax Act, 1961. The TDS rate will be: - 30% if the prize money exceeds Rs. 10,000 (Section 194B) So, in this case, the organizer may deduct Rs. 22,500 (30% of Rs. 75,000) as TDS. Please note that tax laws are subject to change, and individual circumstances may affect the tax implications. It's always a good idea to consult a tax professional or chartered accountant for personalized advice.

NARENDRA

ACCOUNTS MANAGER

20 Points Posted on 04 October 2024

Originally posted by : Rama chary Rachakonda
	Congratulations on winning the scooter! As per Indian tax laws, winnings from lotteries, game shows, or lucky draws are considered income and are subject to taxation. However, the tax treatment depends on the nature of the prize. In your case, you have two options: 1. Take the scooter (asset) 2. Receive an equivalent cash prize of Rs. 75,000 If you choose the scooter, no tax will be deducted at source, as it's an asset. However, you may need to pay wealth tax or property tax on the scooter's value. If you opt for the cash prize of Rs. 75,000, the organizer may deduct tax at source (TDS) as per the Income Tax Act, 1961. The TDS rate will be: - 30% if the prize money exceeds Rs. 10,000 (Section 194B) So, in this case, the organizer may deduct Rs. 22,500 (30% of Rs. 75,000) as TDS. Please note that tax laws are subject to change, and individual circumstances may affect the tax implications. It's always a good idea to consult a tax professional or chartered accountant for personalized advice.