TDS on prize u/s 194BB

TDS 2190 views 2 replies

 

 1. A person whose income is Rs 10000 p.a has won a car in lottery. But he is unable to pay TDS what should the co. do.

   2. Due to heavy competition a media co has launched free scheme to its customer but is confused relating to TDS deduction as because prize winners are of low income & could not afford to pay tax. What should the co do so as to compete in the market as it has no option except to launch the scheme.

Replies (2)
Under such situation it will depend upon the companies policy. They can take a hit of the TDS amount in their books.
THE COMPANY CAN BEAR THE TDS AMOUNT ON BEHALF OF THE WINNERS


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