tax provision on 100% cash back offer

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  1. VIKASVIKAS

    VIKASVIKAS New Member

    I won a nokia -530 under 100% cash back offer . Plz tell me the tax provision on the same . whether i have to pay any tax amount or not
     
  2. rudrabose

    rudrabose Active Member

    Yes, you would be liable to pay tax on this.

    The market value of this phone would be considered as your income and you would be required to pay tax on this income from your own pocket.

    The tax rate in this case would be flat 30%

    The tax would be levied in the same manner as described in this article - http://www.charteredclub.com/income-tax-on-game-shows/
     
    VIKASVIKAS likes this.
  3. VIKASVIKAS

    VIKASVIKAS New Member

    Thanks to reply
     
  4. VIKASVIKAS

    VIKASVIKAS New Member

    Plz also tell me whether such flat rate of tax may be called TDS ?
    If yes, than can i claim refund in my ITR on the basis of Form 16A ?
     
  5. rudrabose

    rudrabose Active Member

    This is not TDS.

    TDS is when the company would have deducted tax and paid on your behalf. It is applicable on cash payments.

    In cash of gifts, you would be required to deposit this tax from your own pocket.
     
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