Tax on gift given to customers through lucky draw

Others 1653 views 1 replies

Hi,

 

I am a business owner from Gujarat and we run a jewellery business here. We have created a lucky draw system for our loyal customers and will be offering five prizes between 60,000 to 10,000. Cumulative amount of all the gifts will be 1,10,000. I wanted to know how do I calculate the TDS or any other gift tax on this gift amount. How should I file that in my returns. Please guide me and revert in case if you need any other details.

Thanks

Jasmin

Replies (1)

It will be treated as winnings and you have to deduct 30% tax.

The same needs to be paid through the bank

and the same method of filing TDS return has to be followed.

visit capraveenmr.wordpress.com for more details or contact me at mrpraveen @ live.com


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