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
TDS will be deducted @ 30.9%.
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
Thank you very much for your prompt reply.
regards
Biju Nair
CAclubindia
