TAX ON PRIZE MONEY (GRANT)

[MINU SALILA]

Hi All,

Recently I won a competition and received a grant of 10 Lakhs as prize money. I would like to know how the taxation will be.

The prize was announced in January 2024 and amount got credited in June 2025. So which financial year will be considered for taxation. 2024-2025 ? or 2025-2026?

Also what percentage need to be paid as tax and based on what criteria?

Thanks in Advance.

AI Summary

Business Idea Grant: Navigating Tax Implications of 10 Lakh Award Based on Capital vs. Revenue Income Classification A participant received a 10 lakh grant for a business idea competition in June 2025. The taxation depends on the grant's nature: if considered a capital receipt, it may be non-taxable; if deemed revenue income, it could be taxable under business profits. The financial year for taxation is 2025-2026, with tax treatment contingent on specific circumstances of the grant's purpose and utilization. Professional tax consultation is recommended for precise classification.