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TDS ON AWARD

purushottam ozarde (satara) (66 Points)

15 November 2019

Whethere the TDS is required to deducted on prize/ award money given by government department?if yes under what section

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178732 Points)
Replied 16 November 2019

The Awards given in the public interest by the Central or State Government or any other body after approval from the government are tax-free u/s. section 10(17A) of IT act. Similarly Prizes given by Central or State government in cash or kind to the winners of Olympics or Asian games or Common wealth games are tax-free. It means that only Government approved Prizes are tax-free. E.g. the Olympic Award received by Mary Kom is tax-free.

But if a person receives prize from Unapproved authority or any Game show, Entertainment program, etc then it will be taxable. According to section 56(2) the said income is chargeable to tax under Income from Other Sources. Those Prizes which are not Government approved are liable to tax. The “Bharatratna” Award received by Sachin Tendulkar is tax free but “Wisden Cricketer” Award received by him is taxable. Government approval is required to make an Award tax free.

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