Respected Professionals,
A moot court competition was organised by University wherein An amount of Rs. 50000 was given as prize money to winner . please guide whether TDS under section 194B or any other sections is required to be deducted before releasing winning amount?
TDS under 194B is applicable @ 30% flat . Usually TDS is deducted @ 31.2% (including 4% cess).
When you file return of income then you have to show this prize money under income from other sources.
Tax liability --- 15000/-
Less Rebate --- 12500/-
Tax ---------2500/-
Add 4% Cess-- 100/-
Balance ........... 2600/-
Less TDS ......... 15000/-. (as per 26AS)
Refund due .......12400/-
(provided winner has only prize money income)
CAclubindia
