TDS under Lottery

Correct

DO NOT THINK THAT MUCH LIBERAL TO INCOME TAX DEPARTMENT

this is correct

Flat  Rate 30% along with EC & SHEC

No Sec 194(1) Will Apply..............

and No Escape

what should be about income of "kaun banega crorepati" whether tds of 30% should be deduct if yes, than why Amitabh Bachan sign the cheque of full payment. 

It must be chargeable to TDS under section 194B @ 30%{(flat rate) no EC or SHEC}

Winnings from lottery or crossword puzzle.

94B. The person responsible for paying to any person any income by way of winnings from any lottery or crossword puzzle [or card game and other game of any sort] in an amount exceeding [ten thousand rupees] shall, at the time of payment thereof, deduct income-tax thereon at the rates in force :

[***]]

[Provided [***] that in a case where the winnings are wholly in kind or partly in cash and partly in kind but the part in cash is not sufficient to meet the liability of deduction of tax in respect of whole of the winnings, the person responsible for paying shall, before releasing the winnings, ensure that tax has been paid in respect of the winnings.]

HEY AJAY,

1. In case of Kaun Banega Crorepati, we dont know the exact method of making payment. i.e. whether it is net of Tax or its gross.

2. If its gross, they might have been following the method of TDS deductions as most of the others who gives the winning in kind is followed that to collect the TDS applicable frm winner and deposit the same. (us 194B)

Since the method speciafied in 2. above is applicable for winnings in kind or winnings partly in kind and partly in cash only. Thus, my view is that KBC gives the cheque net of tax (i.e. whetever amount signed by AB is net of tax only) means rs.3.20 lakhs is net amount and TDS paid by KBC by reverse working.

This is my personal views and can be wrong.

Regards,

Manoj

Where an assesee does not quote Pan then Tds Should be applicable @ 20% or Higher as per TDS rate and after 01-04-2009 edu. cess is demolish so it should not be applicable even if assesse does not file Income tax return.........

It must be chargeable to TDS under section 194B @ 30%{(flat rate) no EC or SHEC}

Mr CA,

Education cess on TDS not at all applicable to TDS provisions (Except Salary payment) as per Finance act 2009 . Hence, flat rate of 30% would have to be deducted without Education cess. Section 206AA is only a penalised provisions and it provides the applicable rates to be replaced with penalised rates if transaction doesnt complies with provisions contained in sec 206AA. Thus, only the higher of two rates would be chargeable to TDS.

Regards,

Manoj