08 May 2010
A TRUST AWARDED SOME ITEMS AS "PRIZES" TO THE PARTICIPANTS IN THE COMPETITION. THE METHOD ADOPTED WAS LUCKY DRAW. NO PARTICIPATION FEE WAS CHARGED FROM THE PARTICIPANTS.
IS THIS LOTTERY WITHIN THE MEANING OF SECTION 194B?
WHETHER TDS HAS TO BE DEDUCTED?
KINDLY EXPLAIN ELABORATELY AND SUPPORT THE REPLY WITH SOME CASE LAW.
09 May 2010
The Finance Act, 2001 - "Lottery" includes winnings from prizes awarded to any person by draw of lots or by chance or in any other manner whatsoever, under any scheme or arrangement by whatever name called.
Hence, your case purely falls under this category and you are liable for TDS. And if your prizes are in "KIND (other than money)", please ensure that tax has been paid in respect of the winnings.
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