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Mr khan runs a shop and he wins a competition for promotion display, he gets a...

Mr khan runs a shop and he wins a competition for promotion display, he gets a cash price for it. Discuss if its assessible or not assessible? sec 6-5 taxlaw

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Answer #1

Mr Khan runs a shop and wins a competition for promotion display, and gets a cash prize. It is taxable under the head "Income From Other Sources" of the Income Tax Act, 1961.

At the time of receipt of cash prize, As per sec 194B, Tax (TDS i.e. tax deducted at source) shall be deducted @ 31.2% (30%+4% health & education cess) if the amount of cash prize is more than Rs. 10,000 and cash prize less TDS shall be remitted to Mr Khan.

however, income from shop shall be taxable under the head "Profits and Gains of Business or Profession.

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