A Money Prize (Rs. 100000) received by a Student cleared CA final is Taxable or Not, he does not have any other income, is it considered as a gift and charged a flat 30% tax rate ?
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Whether it is taxable ?
Replies (15)
It is a income from winning from lottery, gift etc and hence straightaway taxable @ 30% without taking benefit of Slab Limites applicable to an individual.
https://knowyourtaxation.blogspot.in/
i dont think it will come under winnings from lottery or horse race or anything... receiving gifts from a nonrelative of more than rs 50000 is taxable. so i think this amount should also be considered taxable to the assessee
what will be the result if the money prize is less then Rs 50000, whether there is 30% tax rate or no tax
Dear
You can deal with this problem better by refering you 26AS. if ICAI has deducted your TDS under winning from lottery than consider it as the same and claim refund of the tax amount deducted as you have income below 2 lakh.
Otherwise you can show it as other income and then also it will not be taxable as your total income does not exceed rs. 2 lakh.
Therefore i suggest you to consider your 26AS before classifing the amount.
any cash gifts(including gifts received by cheque or draft) in excess of rs 50000 is taxable. So an amount received under 50000 would not be liable for tax. but if the money was received from a relative, then it is exempt(no matter what amount).
thank you, means finally it will not be taxable
Mr. Manoj. If TDS has not been deducted by ICAI as winnings from lotteries, would the person still be liable to file form 26AS?
Dear,
You must alway consider the slab rate
becouse wen you will file your IT return it will show you below taxable limit and hence there will be no tax payable on you.
@ New Article, I meant that it will finally be fully taxable because it is an amount in excess of the basic limit of amounts receivable as gift.
yes. it is included in the total income and taxable only if it exceeds basic slab rate. Does the student have any other income?
Dear Sanjay
Firstly 26AS is not a form.
It is a statment of your TDS deduction and Advance tax payments.
If a person deduct your TDS and deposit the same than you can check it on your 26AS ( it is available on the income tax site by creating your PAN login ID)
Secondlly as per income tax act this is the liablility of ICAI to deduct the TDS amount and deposit the same to goverment. If they do not consider the same then there can be legal proceeding on them
Dear Sanjay
This is not a case of Gift. Scholarship, prize and awards cant be define as gift.
It is not a GIFT but a PRIZE, therefore i guess section 115BB is applicable and not section 56(2)(vii)
Taxability arises as gift provided not received from a relative.
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