work is worship (Service) (2728 Points)
10 July 2012HI
Agreed any Prize winning is subject to flat tax of 30 % ( + EC).
Now a friend of mine has received a Bumper prize worth INR 85000/-, the company has paid my friend after deducting TDS + EC.
The total taxable incomd including this prize money is less than taxable limit.
My question is
1.) Can he claim exemption for "Earnings from Prize money"
2.) Can he claim the TDS deducted.
venkatesh
(Tax Consultant)
(80 Points)
Replied 10 July 2012
He can claim the TDS as refund provided the TDS certificate is available.
Pawan Mittal
(CA Final)
(711 Points)
Replied 14 July 2012
I don't agree with venkatesh, as per section 115BB flat rate of 30% is attracted to "winning from prize money". The benefit of basic exemption is not available to the assessee in this case.
Therefore your friend cannot claim refund of TDS.
CAclubindia
