Clarification regarding taxation on meritorious awards

Why you need advises from members whereas you can get such authentic information direct from Income Tax dept., by filing RTI Application as follows. (Also appreciate the conduct of professionals in LCI, as they are confined to legal matters and taxation is different footing and competent CAs can only offer proper guidance)

Application dt.31st Aug, 2018 seeking information under RTI Act.

Before:  Income Tax Officer,....Ward No........,.....................

RTI fee: Postal order No....for Rs.10/- fvg.Accounts officer, Income Tax Dept.,

Applicant:

Information solicited:

1)Please provide a copy of laid down rules and regulations or stipulations in Act in treating the taxable income in case of coaching institute offers Cars and equivalent money to AIR 1 in various exams like IIT JEE, GATE, NEET etc to Meritorious students.

Applicant.

 

Is there any real issue involved?

Such information will not be made available by the Department through RTI.

In any case, to answer your query, the amounts mentioned by you are taxable.  There are no exemption under the income tax act.  The Distributor of the Award (whether in cash or in kind like car etc.) is liable to deduct Tax at Source (TDS).  The recipient is liable to account the value as income from other sources and pay Income Tax in the usual slab rate method.

Such information will not be made available by the Department through RTI.

In any case, to answer your query, the amounts mentioned by you are taxable.  There are no exemption under the income tax act.  The Distributor of the Award (whether in cash or in kind like car etc.) is liable to deduct Tax at Source (TDS).  The recipient is liable to account the value as income from other sources and pay Income Tax in the usual slab rate method.

Thanks for the quick reply sir :) and useful information aswell.

No real issue involved sir, just for the information.

Thank you!!!