if a company (Pvt) has received the prize money from the government and government has given the amount to that company...
if a comany is small co like turnover is less than 100 crore....
then the amount received for that company is taxable or not??
for this AS 12 is applicable...???
pls guide ...
As per section 194B of the income tax act, all the winnings over and above Rs 10,000 will be subject to a TDS of 30%. With cess and surcharge, the effectual rate will be 31.2%. This TDS is supposed to be deducted by the company or organisation distributing the prize money.
Incidentally, the person responsible for paying to any person any income by way of winnings from any lottery or crossword puzzle for an amount exceeding R10,000 is required to deduct income-tax thereon at the rates in force, currently being 30%, at the time of payment of such money. Thus, the payer is also responsible to deduct tax at source before giving the award.
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