Taxability of awards and rewards
This query is : Resolved
03 August 2011
What is the difference between awards and Rewards. How awards and rewards are taxable under the Indian Income Tax Act.
03 August 2011
Sir, I do not have the expertise to answer the querry of an expert. I can only share my opinion:-
1. Award is given as token of appreciation to a person's achievement in a particular field. It has nexus between skills of a person and achievement. Reward is for a contribution made by a person for a return. Compensation given can also be reward.
2. A Person receives awards for the Best Actor - award- appreciation of his skills and achievement in the field.
3. money received from Police for catching a robber- reward
4. Prize amount received in competitions -not an award.
1. Award is given as token of appreciation to a person's achievement in a particular field. It has nexus between skills of a person and achievement. Reward is for a contribution made by a person for a return. Compensation given can also be reward.
2. A Person receives awards for the Best Actor - award- appreciation of his skills and achievement in the field.
3. money received from Police for catching a robber- reward
4. Prize amount received in competitions -not an award.
05 August 2011
Recognition and not monetary payment is the soul of an award. It needs to be renowned.For eg. Ashok Chakra, Gallantary Award etc., whereas prize amount is more important (rather than the nomenclature) in case of reward.
In my view award/reward is taxable as income from other sources under the Income Tax Act.
However following is the exemption u/s 10(17A):
In case of award
Any award instituted in public interest by CG/SG or by any other body and approved by C.G in this behalf
In case of reward
Rewards by CG/SG for such purposes as approved by CG in this behalf.
CG Central Government
SG State Government
http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2009ITAct/sec_010%2817A%29.htm
The above link shall help you to locate exempted awards.
In my view award/reward is taxable as income from other sources under the Income Tax Act.
However following is the exemption u/s 10(17A):
In case of award
Any award instituted in public interest by CG/SG or by any other body and approved by C.G in this behalf
In case of reward
Rewards by CG/SG for such purposes as approved by CG in this behalf.
CG Central Government
SG State Government
http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2009ITAct/sec_010%2817A%29.htm
The above link shall help you to locate exempted awards.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Form 26QB for TDS on property
- Should I report my US salary for January, February, March in Schedule FA?
- Partnership Business Can start India (two partners one is Indian and OCI both are wife and Husband)
- Capital gain consideration
- BLOCKED-INELIGIBLE GST CREDIT
- Amendment of September 2021 Invoice
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST ON EXPORT COMMISSION
- DTCP approval
- Input credit on export services
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
