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CA Final · Direct Tax Laws & International Taxation · Income from Other Sources

Meera, a resident individual, was a participant in a television game show where contestants compete to win prizes. She won a prize of Rs. 4,00,000 in cash during the tax year. Under the Income-tax Act, 2025, how is this receipt treated?

The prize is taxable under Income from other sources as a winning from a game. The Act's definition of card game and other game of any sort expressly includes television game shows where people compete for prizes. The Rs. 50,000 threshold for gifts does not apply to such winnings.

  1. AChargeable under the head Income from other sources as a winning from a game, because the definition of card game and other game of any sort includes a game show on televisionCorrect
  2. BNot chargeable, because only lotteries, races and gambling are covered and a game show is a skill contest
  3. CChargeable under the head Profits and gains of business or profession because she earned it by effort
  4. DChargeable only to the extent it exceeds Rs. 50,000, being a sum received without consideration

Explanation

Section 92(2)(b) taxes winnings from card games and other games of any sort. Section 92(5)(b) states that this expression includes a game show or entertainment programme on television or electronic mode where people compete to win prizes. So the whole Rs. 4,00,000 falls under Income from other sources. The Rs. 50,000 threshold applies to section 92(2)(m) receipts, not to winnings.

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