Are the Prizes and Awards taxable in India?
Suppose, I receive 10k as an award for good work as an employee of the quarter. Do I need to pay tax on the 10k?
From what I have experienced, its clubbed with annual salary- under variables and taxed- without distinction.
I think it is clubbed with the income. There is no separate rate for it.
It gets taxed separately meaning TDS gets deducted separately. Then it gets added to your salary after all the deductions at the end. May be each employer does it differently. This is as per my experience .
Hey @Jack_R,
If you are receiving the prize amount from your employer, it would be a part of your taxable salary and TDS would be applicable on the same as per your applicable slab rate.
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but there is no tax up to 5K amount right? In my form 16 it said exempted reward 5K
Hey @Jack_R,
Yes if the reward is received as a gift, an amount up to ₹5000 would be exempted from taxes. The amount received over ₹5000 would become taxable.