New Delhi: Neeraj Chopra gained a silver medal on the Olympics 2024, whereas Manu Bhaker, Sarabjot Singh, Swapnil Kusale and Aman Sehrawat gained bronze medals. These athletes are being showered with money, items and prizes from the federal government or different industrialists. However is that this revenue taxable too?
A report has claimed that French medallists will get Rs 80,000 for gold, Rs 40,000 for silver and Rs 20,000 for bronze from their authorities, however no tax shall be levied.
Will medallists be taxed?
In India, money or items from the federal government are tax-free. Based on the Central Board of Direct Taxes (CBDT), awards acquired by Olympic, Commonwealth or Asian Video games medallists from the central or state governments are exempt underneath Part 10 (17A) of the Earnings Tax (I-T) Act.
Manu Bhaker gained two medals on the Paris Olympics and Sarabjot Singh was given Rs 30 lakh and Rs 22.5 lakh respectively, which shall be tax free. The Indian hockey staff’s awards from the Punjab and Odisha state governments may even be tax free.
Related rule within the US?
Sure, earlier the US used to tax all its medal winners on the worth of their medals along with the prize cash. However in 2026, US athletes shall be taxed provided that their annual revenue exceeds $1 million.
What about items as a substitute of money? Will it’s taxed?
A medal doesn’t imply jewelry as it isn’t an on a regular basis put on merchandise like a gold chain or necklace. Part 56(2)(x) of the Earnings Tax Act states that movable property (as outlined and specified) with out consideration, the place the combination worth exceeds Rs 50,000, is taxable. These embody land, constructing, shares, securities and jewelry, however medals are usually not talked about.
