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Tds on gift

887 views 5 replies

BIJU S NAIR

FINANCE

108 Points Posted on 22 March 2012

Dear Sir,

I participated a cricket prediction contest and won a prize worth Rs.1,00,000/-. Kindly let me know whether the party giving me the prize should deduct TDS (Gift tax) on it ? If so what should be the percentage.

Looking forward for your reply

Biju Nair

Replies (5)

Sonam Bidasaria

770 Points Posted on 22 March 2012

TDS will be deducted @ 30.9%.

CA Neil Ganatra

Partner - Gautam Joshi & Co.

871 Points Posted on 23 March 2012

@ 30.90% under section covering winning from lottery

CA Neil Ganatra

Partner - Gautam Joshi & Co.

871 Points Posted on 23 March 2012

Returns for the A.Y. 2008-09 and 2009-10 can still be filed but for that an application has to be made to commissioner or joint commissioner requesting permission to file return. In this application reason for non-filing must be mentioned. This application is made u/s 118.

CA Ankit Totla

Practicing Chartered Accountant

469 Points Posted on 23 March 2012

Firstly, it is not a gift but a prize won by you. Gift is something given out of gratitude, love or affection.

This is to be considered as Income from winnings from lottery, etc liable to be taxed under income from other sources and the payee is liable to deduct tax @ 30% + 3% Education Cess totalling to 30.9% as per the provisions of section 194B