| Question And Answer | |
|---|---|
| Subject: | Whether ALL PRIZE MONEY TAXABLE UNDER SECTION 115BB EXCEPT THOSE EXEMPT U/S 10 |
| Category: | Income-Tax |
| Querist: | rajesh agarwal |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | Taxability of prize money |
| Date: | May 18, 2021 |
A number of corporate organizes competition based on real world problems. The topics are like:
The corporate will have a panel ,who will judge the best solution and accordingly prize money will be awarded.
i am attaching the paper of one such competition from gsk pharmaceuticals ltd.
i wanted to know, whether these receipts also will be considered for the purpose of section 115bb in the hands of recipient .In my opinion, these receipts are not lottery, nor any games or race. so it should not be taxed under section 115bb but should be in the normal course with the exemption benefit and slab rates.
will be highly obliged to receive a earliest reply
As we understand, the term “and other game of any sort” should not be read liberally to take into account this competition. As per the rule of Ejusdem generis used to interpret loosely written statutes. Where a law lists specific classes of persons or things and then refers to them in general, the general statements only apply to the same kind of persons or things specifically listed.
Since all the other terms pertain to casual games, based on chance and luck; A best solution to a real world problem should not be read into section 115BB of the Act.
Note: In Aroon Purie v. CIT (2015) 375 ITR 188 (Delhi)(HC) the court held that editor of magazine, award received from third person for excellence in journalism- is not assessable as income. In Abhinav Bindra v. DCIT (2013) 35 taxmann.com 575 / 59 SOT 87 (Delhi ) (Trib) Rewards received by non-professional sportsman shall not be income chargeable to tax.
Dr.K. Shivaram Senior Advocate