Manash (Accounts Officer) (44 Points)
03 April 2024Our organization run many sales contest and the winners got award like cash as well expensive gift, want to know the tax implication for employers and employees for such award.
CA Roomi Gupta
(FCA)
(149 Points)
Replied 03 April 2024
If you win awards or prizes, check whether they are approved by the Government or not. If the award is approved by the Government, you don’t have to pay taxes. If, however, the award is not approved, tax would have to be paid.
Prizes and winnings are always taxable in the hands of the winner. The amount of prize won would be recorded under the head ‘income from other sources’. Winnings from awards and prizes would be taxed at @ 31.2% even if the individual’s income falls in the 20% slab rate.
Manash
(Accounts Officer)
(44 Points)
Replied 03 April 2024
Thank You, Just one query for clarification.
1. Example of Prizes are - Motocycle, Electronic Gadgets etc
2. Whether Organization is require to reflect in Form-16
CA Roomi Gupta
(FCA)
(149 Points)
Replied 04 April 2024
Winning is not part of salary so in my opinion it is not required to be reflected in form 16.
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