Tax on KBC, Online Games, Lottery and Shows. Discover complete information for taxation on Online Games, KBCLottery and Shows. Here we are providing complete information concerning Tax on KBC & Online Games, Lottery Game and Reveals like– Tax on KBC, Tax on Lottery, Tax on Online Games, TDS on Winning Rate and so on. In this article you can discover everthing associated to Tax on KBC & Online Games, Lotto and Shows. Now you can scroll down below and inspect total information regarding ” Tax on KBC, Online Games, Lottery Game and Reveals”
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Tax on KBC, Online Games, Lottery and Reveals
Now a days every TELEVISION channel is conducting some contests which offer significant amount of prize money to the winners … For instance KBC, Indian Idol, Big boss etc.,
To lots of people it is not known that the amount of cash prize won through these programs is taxable at a flat rate.
Must Check Out– Latest Earnings Tax Piece Rates
Tax on KBC:
KBC is a program where winning is entirely not based on possibility but understanding and skills of the candidate likewise plays a part in the winning.
As per the amendment brought by Financing Act 2001, the definition of income include card game and other video game of any sort in its meaning. A description was added to section 2(24)( ix) to define the term lottery and games as under:
Should Check Out– National Cost Savings Certificate (NSC)
Tax on Lottery:
lottery consists of payouts from prizes awarded to any person by draw of lots or by chance or in any other manner what so ever, under any scheme or arrangements by whatever name it is called.
Card video game and other game of any kind:
It consists of any video game show, an entertainment show on tv or electronic media, in which people compete to win prizes or any other comparable benefits.
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Taxability of earnings:
Area 115 BB of the Income-tax Act, under the chapter ‘Decision of Tax in particular Special Cases,’ prescribes income-tax at the flat rate of 30% on all earnings by method of earnings from lottery game or crossword puzzle or race consisting of horse race or card video game and other game of any sort or from gambling or betting of any type or nature whatsoever. In fact, thinking about the levy of 3% education cess on theamount of income-tax, the effective tax rate would exercise to 30.9%.
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Basic exemption limitation?
Even in a scenario where an assessee has no income source at all and his prize money from a lottery game or a game program is only Rs 1,00,00 0, tax of Rs 30,900 would still be levied on the exact same, because no fundamental tax exemption or any allowance or deduction are qualified for set-off versus such jackpots.
TDS on Reward won:
1. If prize won remains in kind:
According to section 194 B of Income Tax Act, 1961, if the prize money is not in cash but in kind or partly in money or celebration in kind then the receiver of the reward is needed to transfer the tax calculated @ 30% of the aggregate worth of the reward.
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2. If reward won remains in money:
area 194 B of Income Tax Act, 1961, says that if the reward cash is more than Rs10000 then TDS shall be deducted. 70 lakhs after deducted of tax Rs.
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