Anuja (-) (141 Points)
30 October 2014If a company conducts a speech competition in which all employees and outsourced workers are invited to participate. Prize distributed in cash in such case will be taxable in hands of employee or not ?
SAURABH NENE
(Chartered Accountant)
(226 Points)
Replied 30 October 2014
In my opinion it will be taxable in hands of employees under the head income from other sources. Gifts, Awards, Prizes etc are taxable except when awarded by specified institutions or by Govt.
Mihir
(Wealth Manager)
(5293 Points)
Replied 30 October 2014
Yes, the prize money will be taxable and TDS too might be deducted.
Anuja
(-)
(141 Points)
Replied 30 October 2014
Is employer responsible for deduction of TDS from Salary of employees for such prizes or employees should themselves show it in their personal income tax return as other sources income.
SAURABH NENE
(Chartered Accountant)
(226 Points)
Replied 30 October 2014
Employer is not under obligation to deduct the tax. But employer should also consider income from other sources and house property as declared by the employee while deducting the tax. Here as he employer is aware of the income receivd by employees by way of prizes, hence to be on safer side employer should deduct the tax.
Ravi Borana
(Chartered Accountant)
(39 Points)
Replied 31 October 2014
It will be taxable under other sources and tds will be deduct @ 30% under 194B
https://www.taxmanagementindia.com/visitor/detail_case_laws.asp?ID=239442
Pradeep Kaushal
(ACCOUNTANT )
(59 Points)
Replied 05 January 2016
Dear Sir,
Happy New Year !!!
Can you Please let me know what is examtion limit amount of Prizes.
Thnaks.
Pradeep
Ankit Taprania
(CA FINAL )
(542 Points)
Replied 05 January 2016
on PRIZES upto RS 10,000 TDS is not required to be deducted.
after that deduct TDS @ 10% on WHOLE AMOUNT
CAclubindia
