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Receipt of award - Taxability

Shrilakshmi Raj (CA) (81 Points)

15 July 2009

An employee has received an award of Rs.100,000 from Department of Excellence in Science.

Is this amount of Rs.100,000 taxable in the hands of the employee?

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3 Replies

(Guest)

Hi Shrilakshmi,

Yupp.. it is taxable in the hands of employee, if it is in relation to his employment then under the head salary otherwise under ncome from other source. If it would have been scholarship then he/she can be exempted from tax u/s 10(16).

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Shrilakshmi Raj (CA) (81 Points)
Replied 15 July 2009

Thanks.

But this is received from "THE INDIAN SCIENCE CONGRESS ASSOCIATION"

Still is taxable in the receiver's hands?

(Guest)

Well Shrilakshmiji if the Association is registered u/s 12AA or 10(23C) then such award received shall be exempt u/s 10(17A) otherwise taxable as above. So you need to check it from the Asso.

Happy to help,.,,..!!!