Re: Query on prize money/hackathon/Section 194B - TDS of the Income tax act

[GAURAV RAUL]

Can you please share few more links of such contests. You seem to participate in lot of them.

It would be much helpful than discussing TDS. Whatever TDS may be, organizers would already deduct that.

Thanks

On Thursday, June 1, 2023 at 9:32:52 PM UTC+5:30 Pallavi Gupta wrote:

Here are couple additional links on applicability of Sec 194B for "similar" contests/hackathons:

#1

https://assessmentonline.naac.gov.in/storage/app/hei/SSR/103257/3.3.3_1578067970_4067.pdf

#2

https://unstop.com/competitions/stockmind-icici-direct-60280

On Thursday, June 1, 2023 at 9:26:06 PM UTC+5:30 Pallavi Gupta wrote:

Hello organizers,

I know that the liability of taking care of disclosure of the prize money for income tax purposes lies with the individual contestants, however, on a brief reading, (it appears to me) that the organizers too, in certain cases, for a flat 30% TDS incase the prize money exceeds Rs 10,000 as per Section 194B of the IT Act. So I'd presume, for any prize amount exceeding Rs 10K, the organizers should deduct the flat TDS and (possibly issue TDS certificates as well for IT filing purposes). 

I am not an taxation expert, however, can you please confirm if the prize money is post TDS deduction or without any TDS deduction whatsoover? If so, will TDS certificates be issued, wherever applicable (assuming issuing TDS certificates is applicable in this case)?

In my limited reading, it does appear that hackathon winnings will attract statutory provisions of Section 194B (refer to page 3 - red highlighted section in the link below) and the onus for compliance is both on organizers as well as participants).

Hackathon winnings and Sec 194B

Thanks.