TDS on prize given to participants in Livestock show

Yes, TDS under Section 194B of the Income Tax Act, 1961 is generally applicable on the cash prizes awarded to farmers at livestock shows, provided the prize amount exceeds the specified threshold.

Section 194B covers TDS on prizes from lotteries and "any other game of any sort," which includes prizes at State Government agricultural and livestock shows. The short answer: TDS applies if the cash prize to a single winner exceeds Rs 10,000 from a single event.

Key compliance steps for the organizer:

Threshold: Rs 10,000 per prize per winner. If the prize is below this, no TDS obligation.
Rate: 30% TDS on the full prize amount (not just the excess above Rs 10,000).
Deposit: Use Challan 281 and deposit TDS within 7 days of the end of the month in which it was deducted.
TDS return: Report in Form 26Q (or Form 27Q if the winner is a non-resident) for the relevant quarter.

On government exemption: State Government livestock show prizes are NOT exempt under Section 10 of the Income Tax Act. There is no specific exemption for agricultural prizes. The winner includes the prize in income from other sources and pays tax at their slab rate (with TDS adjusted as advance tax).

If the prize is in kind (trophy, animal), and no cash is simultaneously paid, TDS is still required. The organizer must either collect cash from the winner to cover the TDS or obtain prior written consent from the winner to gross up the prize.

If there is a dispute about TDS applicability or the assessed amount, the deductor or winner can file an appeal before CIT(Appeals). Our [income tax appeals guide](https://taxgarden.in/blog/income-tax-appeal-section-246a-cita-itat-form-35-india-2026) covers the Form 35 procedure and timelines.