TDS on gift in kind

Tax queries 328 views 4 replies

Dear All

If I got a car as gift in a contest value of which is 400000 after deducting TDS, can I claim TDS refund?? 

Thanks in advance.. 

Replies (4)
Tds is nothing but advance tax paid by you however if your liability of tax is less than the tds amount you can claim refund.. Suppose your tax liability is Rs. 15,000 on your total income however your tds deducted is Rs. 20,000 then there will be refund of Rs. 5,000 and in case if no tax liability arises which means your income comes under income not chargeable to tax in that case you will get full refund of Rs. 20,000.Any query you can contact me on tshrmodi @ gmail.com.
No you can't claim deduction

Ok... So winnings of any nature(cash or kind) from lottery, game shows etc shall be taxable under 115BB and any other gift shall be taxable under section 56 where car will not be taxable. 

Am i correct? 

It will be taxable as you get in the contest
suppose your car cost is rs 5lakh you get in as winning prize then you or the person who Heald that contest has to bear the tax as per sec 194B @ 31.2% of the amount 5lakh which is term as non refundable TDS in income tax and shown as income from other sources with the heading winning from contest


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