gift

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2010 Sir, my company has gifted a car in a draw to one of its customer.What Provisions are applicable to our company?plz guide,its urgent

Aditya Maheshwari

Aditya Maheshwari (Expert)
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05 October 2010 It would be taxed as winnings from lotteries
18[Tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting of any form or nature whatsoever.

115BB. Where the total income of an assessee includes any income by way of winnings from any lottery or crossword puzzle or race including horse race (not being income from the activity of owning and maintaining race horses) or card game and other game of any sort or from gambling or betting of any form or nature whatsoever, the income-tax payable shall be the aggregate of—

(i) the amount of income-tax calculated on income by way of winnings from such lottery or crossword puzzle or race including horse race or card game and other game of any sort or from gambling or betting of any form or nature whatsoever, at the rate of 19[thirty] per cent; and

(ii) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause (i).

Explanation.—For the purposes of this section, “horse race” shall have the same meaning as in section 74A.]

and tax would be deducted at source of the person to whom car was given u/s 194B
57[Winnings from lottery or crossword puzzle.

58194B. 59The person responsible for paying to any person any income by way of winnings from any lottery or crossword puzzle 60[or card game and other game of any sort] in an amount exceeding 61[five thousand rupees] shall, at the time of payment thereof, deduct income-tax thereon at the rates in force :

62[***]]

63[Provided 64[***] that in a case where the winnings are wholly in kind or partly in cash and partly in kind but the part in cash is not sufficient to meet the liability of deduction of tax in respect of whole of the winnings, the person responsible for paying shall, before releasing the winnings, ensure that tax has been paid in respect of the winnings.]

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