Hello sir...
In our town a Marathon Race is organised and the prize is Rs. 500000. Is this income liable for tax deduction at source..??
If yes under which section tax is to be deducted..??
10 Replies
CA Gaurav Ajit Potdar
(Chartered Accountant)
(846 Points)
Replied 05 January 2013
Under Section 194B of the Income Tax Act(TDS), 30 per cent tax is deducted on any prize money in excess of Rs 10,000 and other winnings from games, lotteries etc. Winnings from marathon race can be considered under other winnings from game .
Devendra
(Chartered Accountant)
(4780 Points)
Replied 05 January 2013
As per my knowledge, Marathon Race can be considered to be a sport and the winner may be shall be a Professional. Hence, TDS shall be deducted @ 10% u/s 194J of the Income Tax Act, 1961.
Regards,
Devendra Kulkarni
CA Gaurav Ajit Potdar
(Chartered Accountant)
(846 Points)
Replied 06 January 2013
i think persons taking part in marathon race cannot be considered as professionals.
siddhpura hiren
(Accountant)
(59 Points)
Replied 06 January 2013
yes, absolutly righ a person taking part not a professional........yes sec. applicable 194B winning from race as per income tax act
Kulwant Singh Khalsa
(CA STUDENT)
(105 Points)
Replied 08 January 2013
As per my knowledge, the final prize money (gross of taxes) TDS will be @ 10.3%(upto 30.6.2012) and 20.6%(wef 1.7.2012) for international athletes u/s 194E and @ 30.9% for Indian athletes u/s 194B.
Ratika
(Article)
(21 Points)
Replied 01 October 2015
But what if Prize money cheque is issued to the sponsor rather an athlete directly and there is fixed percentage decided among them for prize distribution?In this case how sponsor can save tax?
Karthik.V.Kulkarni
(Chartered Accountant)
(594 Points)
Replied 01 October 2015
Hi Darshan,
I would like to contradict certain veiws , in my opinion 194B is only for winnings where chance or luck is involved not to all winnings. The section stipulates "winnings from any lottery or crossword puzzle or card game and other game of any sort in an amount exceeding ten thousand rupees shall" . The other game of any sort cannot be read on a stadalone basis as the word "or" is missing , instead the word "and" is used. Thus by applying the principles of ejusdem generis one can concur that only winnings in which luck is involved are covered under the sec 194 B.
I cannot see any other section under which you are liable to deduct tds.
Regards
Karthik V Kulkarni
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