MANAGEMENT

Detailed explanation-1: -If the Prize money exceeds Rs 10, 000, then the winner will receive the prize money after the deduction of TDS 31.2% u/s 194B. Please note that it does not matter whether the income of the winner is taxable or not.

Detailed explanation-2: -TDS on Winnings As per section 194B of the income tax act, all the winnings over and above Rs 10, 000 will be subject to a TDS of 30%. With cess and surcharge, the effectual rate will be 31.2%. This TDS is supposed to be deducted by the company or organisation distributing the prize money.

Detailed explanation-3: -Points Of Note On Taxation Of Game Show Winnings: The following points are worth remembering in relation to TDS on prize money: Everyone-irrespective of their regular income, the amount of winnings, age or physical condition-has to pay a tax of 30.9%.

Detailed explanation-4: -Ans: No, the TDS paid for winnings from lotteries and game shows are non-refundable. Usually, taxpayers can claim a refund if the TDS deduction is more than their tax liability in an assessment year. That said, for lottery winnings, you cannot claim any refund.

Detailed explanation-5: -Sch TDS2 in ITR1 is for reporting income earned other than salary. If you have earned interest on bank FD, then you need to fill it here. Do check your form 26AS as well to know exact TDS deducted. You need to report what is accurate and as per the law and not so as to claim refund.