I have the following query pertaining to the Income Tax Law :
There is a show on Sony Entertainment TV Channel called 'Lift Karade.' They call one celebrity on the show and have 3 of their fans (selected through unknown criteria) compete with each other in order to win a meet with their superstar. While the winner among 3 gets to meet their superstar, they are also given a Gold Medal as a token of appreciation with the celebrity's autograph embossed on it. Also, they provide some monetary help usually amounting to near Rs. 10 Lakhs to some needy person selected by the production team from a city nominated by the celebrity. I have got the following taxability concerns :
a) What will be the taxability of the received amount in the hands of that needy person?
b) Will the amount be allowed to the production house as a deduction in calculating the taxable income?
c) Will the gold medal received by the winner fan taxed as gift?
CAclubindia
