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Income tax on prize money

14 February 2017

Govt of India has announced prize for cleanest hospital in every state under swacch bharat Mission.In this competetion a prize money is given to a hospital Part of this prize moeny is distributed among the employees of that hospital also.I want to know is this prize money TAXABALE ?No TDS done .A part of prize money is distributed among govt employees of that hospital.Should employees add the amount in their income for tax calculation

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7 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177824 Points)
Replied 14 February 2017

Whether any TDS deducted on the amount? If yes, at what rate?

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(Guest)

it will add to total income

DR SUNDEEP NIGAM (DOCTOR) (73 Points)
Replied 14 February 2017

No tax deducted at source.The maount receievd by hospital a part of that distributed among employee as per govt guideleine.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177824 Points)
Replied 14 February 2017

Consider it as compensation towards exenses incurred for Swachh Bharat Abhiyan. Any additional amount would be added to your (hospital's) income.

DR SUNDEEP NIGAM (DOCTOR) (73 Points)
Replied 14 February 2017

A part is of the amount distributed among the govt employees of the hospital.Should the employee add the amount in their income for tax purpose ?

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DR SUNDEEP NIGAM (DOCTOR) (73 Points)
Replied 14 February 2017

A part is of the amount distributed among the govt employees of the hospital.Should the employee add the amount in their income for tax purpose ?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177824 Points)
Replied 14 February 2017

The job work can be treated separately than the routine work. And hence the prize money may not be added to salary, and taken as gift; subject to any specific guidelines of the scheme.