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Wining from a singing competiton

Kishor Sharma (Article) (31 Points)

04 December 2013

Dear Sir, I have Received A prize Of Rs.25000 From A singing Competition As the Winner Of that Competition. I want To Know At what Rate the Payee is Liable to deduct My TDS. The competition was Broadcasted on Television and The Producer Of That Competition was Produced By a Domestic Company. Regards, Kishor Sharma

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7 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 05 December 2013

TDS u/s 194B shall be 30% deduction.

*RENU SINGH * (✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ ) (21627 Points)
Replied 05 December 2013

Sec 194B incl winning from lotteries, games etc. Hence it's taxed @ 30 % and education cess of 3% on such tax would also be applicable.

Kishor Sharma (Article) (31 Points)
Replied 05 December 2013

Please Clearify me When It Involves Use of Personal Skill Then How can it be Possible to deduct tds under section 194b

Sumit Songara (Assistant Executive) (51 Points)
Replied 05 December 2013

As per provision of 194b "The person responsible for paying to any person any income by way of winnings from any lottery or crossword puzzle [or card game and other game of any sort] in an amount exceeding [five thousand rupees] shall, at the time of payment thereof, deduct income-tax thereon at the prescribed rate ".

hence it taxed @ 30% and 3% ed.cess of such tax also aplicable.

if you are professional singer than 194j apllicable but in this case 194b should applicable.

NOUFAL (ACCOUNTANT) (762 Points)
Replied 05 December 2013

Money won in a lottery, puzzle competition, reality show or a horse race is subject to the highest TDS rate of 30%. "If you win Rs 50 lakh in a game show, you will only be able to take home 70% of your winnings or Rs 35 lakh," says Homi Mistry, partner at Deloitte Haskins & Sells. The TDS is applicable even on non-cash winnings. So, if you have won a car worth Rs 10 lakh, you will only be able to claim it after you pay Rs 3 lakh as tax.

(Guest)

Congratulations!

Any game requires personal skill.. If you were hired for music show then 194J would be applicable.. but now it is 194B.

Besides Regulation 65. says that an Articled assistant not to engage in any other occupation without the previous permission of the Council. So Its better that you don't show the amount as professional fees.

VIKASH KUMAR JAIN (Audit Executive) (711 Points)
Replied 07 December 2013

In case of game ( where competition exist) 194B @ 30% In case of film singing 194J @ 10% In your case it is 194B, Its a winning amount and not your professional earning.