Bigg Boss 16 winner will have to pay this much tax from his prize money, know everything here
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Bigg Boss 16 Online Prize Money Tax Deduction: There are many reality shows in the TV industry, in which the winning contestants get prize money along with a gleaming trophy. Bigg Boss 16 is also moving towards the finale. The grand finale is on February 12 and the winning contestant is expected to get Rs 50 lakh as prize money. However, during the cancellation of a task, the prize money is only 21 lakh 80 thousand. Let us tell you that whoever wins the contest, he does not get the entire money, some rupees have to be paid to the government as tax. Actually, the person who wins money in lottery, online gaming or game show has to give a certain part of the prize money to the government. The reason for this is that almost every type of income or income in the country comes under the ambit of tax and the government levies a fixed tax on it.
Tax is also applicable on prize money of reality shows.
The amount won in reality shows is liable to tax under section 56(2)(ib) of Income Tax. It is declared under income from other sources at the time of income tax return filing. Under section 56(2)(ib) of Income Tax, you have to pay a charge in these games.
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lottery
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crossword puzzle
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Race (including horse race)
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card games
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earnings from gambling or betting
How much tax is deducted from prize money?
Section 194B of the Income Tax Act 1961 applies to winning any amount or prize in lottery or any game. According to this, if the amount won in a competition is more than Rs 10,000, then TDS will be deducted on it first and the winner will get the remaining prize money. 30 percent tax is deducted on the amount won in lottery or competition, or in case the cost of the item exceeds Rs 10,000. Apart from this, a surcharge of 4 percent is also deducted on this. This deduction is not refundable under any circumstances. This thing has been told in section 194B and 194BB of Income Tax. This deduction is not refundable in any form.
What is the rule of income tax?
According to the rules of Income Tax or Income Tax, the amount won in any lottery, game show, quiz show, competition etc. is legally taxed. Be it the game of Satta Matka, any lottery or these days there is Bigg Boss 16 game show on TV. You must have often seen advertisements for countless game shows, online betting games, etc. on social media. The government advises to avoid them, but on the other hand it also collects revenue by imposing tax on it. At present, consideration is being given to bring such transactions under the ambit of GST. Priyanka Chahar Chowdhary, Archana Gautam, Shiv Thackeray, MC Stan are the top 5 finalists in this season. If the news going on on social media is to be believed then Priyanka can win the show.
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