Question ID :
19060
Tax on Prize money won from Marathons
As per Section 115BB of Income tax act Tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting of any form or nature whatsoever. should be at 30. What should be the tax on Prize money won by Marathon Runners in an event should it be taxed as prize money from a race or tax under section 115BB to be restricted to game of chance? What is the responsible of Marathon event organisers in such a case? Should they deduct Tax under Section 194B or 194J from prize money won by Participants.
Posted by
Prashanth Karanth
on
Jan 05, 2016
Filed Under
DIRECT TAXES
Section 194B specifies "other game of any sort". So in this case TDS under section 194B at 30 is applicable as payment is related to prize money and paid for game of marathon, if prize money exceeds Rs.10000. It is the responsibility of event organizer to ensure before releasing prize that tax has been paid on such prize money, if payment is made in kind or partly in cash and partly in kind and cash payment is not sufficient to deduct TDS.
Posted by
CA. chunauti dholakia on
Jan 05, 2016
Answer ID :
52600
tds will have to be done at30, but income will be assessed as income from other sources atnormal rates
Posted by
CA. VENKITARAMAN K V on
Mar 03, 2016