After 3.5 months of unlimited fun which brought with it possibly all the human emotions under one roof, Bigg Boss 11 finally had its grand finale on Sunday. Bhabi Ji Ghar Pe Hain fame Shilpa Shinde emerged victorious among the 19 people that were part of the show.
The original prize money of the 11th edition of the Bigg Boss was Rs 50 Lacs which eventually got reduced to Rs 44 Lacs. One of the finalists of the show, Vikas Gupta took away with him the remaining Rs 6 Lacs out of the original prize money in one of the tasks in the finale week.
But do you know the actual amount that the winner of the show a.k.a. Shilpa Shinde will get in her pocket after tax? Let us walk you through the taxability of the prize money.
Normally,Prize money of these sort of game shows attracts the provisions of section 115BB of the Income Tax Act which deals with the taxability of winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting of any form or nature. This section attracts 30.9% tax rate,so we can say that Shilpa Shinde will have to pay 30.9% (With EC & SHEC)tax on her prize money of Rs 44 Lacs that is Rs 13,59,600/-. So her in hand income after tax would be Rs 30, 40,400/-
Now there arises a question, when would this tax be payable?
As per section 194B which deals with TDS requirement on the above-mentioned incomes, the payer of such above-mentioned incomes is liable to deduct tax at source or as we say TDS at the rate of30.9 ( With EC & SHEC) percent when such income exceeds Rs 10 thousand at the time of payment.
So, in simple words, Bigg Boss show would be required to deduct tax of Rs 13,59,600/- of the prize money at the
source and deposit it to the government as a part of TDS compliance under section 194B. At the time of filing of income tax return, Shilpa Shinde would show entire Rs 44 Lacs as income from other sources under section 115BB and would claim the credit of tax deducted at source by Bigg Boss show.
So, the prize money of Rs 44 Lacs is nothing but a myth as the actual amount that would be received by Shilpa Shinde would be Rs 30,40,400/- and rest Rs. 13,59,600/- would go into governments account. Stay tuned to Tax2win for more such updates..