Gift tax on Rewards for entrance exam toppers

Hello all,

Recently I have seen in the websites that Some of the GATE coaching institutes like MADE EASY, IES MASTER etc. are giving CAR to AIR1 of GATE exam or equivalent money.

now my question is, whether these rewards are taxable or not? if yes what is the slab? if no, why?

Also who pay this tax, whether the institute or student? if student opts car how student pays the tax? if student accepts money in the form of cheque, whether it is tax deduction at source??

thanks
Ravinder