Prizes earned are taxable in the hands of the winner as Income from Other Sources income (IFOS) as per Sec 56(2) of the Income Tax Act.Awards such as National awards, Nobel prize, Arjuna award, Bharat Ratna award, etc notified by the government under Sec 10(17A) is exempt from tax in the hands of the receiver.Īwards such as filmfare, ICC Cricket awards, etc are taxed as IFOS income since they are not approved by the Government If the Award of public interest is approved by the Government, it is exempt from tax.The tax treatment depends on multiple factors.
Such incomes may be earned in form of cash or kind in forms of awards or prizes.
