What are some backstage secrets about Kaun Banega Crorepati?
Backstage secrets about
Kaun Banega Crorepati?
This one’s not really a backstage secret, but something which can be very deceptive at times for the viewers.
The prize money shown as won by a contestant is the amount on cheque, on screen, before taxes are deducted. So the contestants actually get lesser than what they have won. Yes, even these prize winnings are not exempted from tax and have a special provision in the tax-return sections. So how much is the tax levied on such earnings?
As much as 31% of the total amount won on the show.
The similar taxation is applicable for other game shows like Bigg Boss, Dance India Dance, MTV Roadies etc.
Here is how it works.
The money earned from such game shows is taxable under Section 56(2)(ib) and is to be disclosed under head “Income from Other Sources” at the time of filing Income Tax return.
As per Section 56(2)(ib), any income from any of the following sources is chargeable to tax as “Income from Other Sources” –
- Crossword Puzzles
- Races including Horse Races
- Card Games and any other Games of any sort
- Gambling or Betting of any form or nature whatsoever
Finance Act 2001 clarified that “Card Games or any other Games of any sort” includes any game show, an entertainment programme on television or electronic mode in which people compete to win prizes.
Now the income earned from shows like KBC is taxable at a flat rate of 30% with no benefits of the income tax slab rates. Over and above this, an Education Cess of 2% and SHEC of 1% would also be levied on the 30% tax and therefore the total tax return from winnings on such shows turn out to be 30.9% and to add to it, if prize money is more than 10,000 then TDS or Tax Deduction at Source will be done at 30.9%
In other words, the contestant gets the money only after the tax is deducted at the source. So just imagine the happiness of a person earning INR 1 crore who pays as much as INR 31 lakhs in taxes.
His happiness just got taxed at 30.9%
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