Query:

Assessee is Cricketer.  Whether amount (Award) received from PM Care fund and Sports authority of GUJRAT for participating and reached at Final and winning Silver Medal for INDIA is Exempt under section 10(17A)

Note that NO TDS has been deducted.

Source : Only Bank entry with narration is available and no other documents are available with Assessee.

My Compilation for Exemption is :

If they are authorized by the Indian government, awards are regarded as being exempt from taxes. Awards can be taxed depending on the circumstance under which they were given, who is granting them, and whether the Central or State Government approve them. According to Section 10 (17A) of the Income Tax Act, if the award is awarded in the public interest and is authorized by the government, it is not subject to taxation. A list of awards that are entirely tax-free in the recipient's hands is maintained by the Indian government. The following are some of these awards:

• National Awards
• Nobel Prize if it is notified by the Government under Section 10 (17A) of the Income Tax Act
• Awards given by the Government to winners of Olympics, Asian Games, Commonwealth Games, etc.
• Arjuna Award
• Bharat Ratna Award, etc.

SECTION 10(17A) OF THE INCOME-TAX ACT, 1961 - AWARDS - AWARDS INSTITUTED/APPROVED BY THE CENTRAL/STATE GOVERNMENT UNDER CLAUSE (17A) FOR THE PURPOSE OF EXEMPTION OF PAYMENT MADE IN PURSUANCE THEREOF - CLARIFICATION ON TAXABILITY OF AWARDS FOR SPORTSMEN

CIRCULAR NO. 2/2014 [F.NO.199/01/2014-ITA.I],

The Central Board of Direct Taxes had issued Circular No. 447 (hereinafter called "the Circular") on 22nd January, 1986 clarifying that awards received by a sportsman, who is not a professional, will not be liable to tax in his hands as the award will be in the nature of a gift and/or personal testimonial.

2. The said Circular was applicable in a tax regime when gift was not taxable in the hands of the recipient and with the fundamental change in the manner of treatment of gift by amending the definition of income under sub-section (24) of section 2 by introduction of sub-clauses (xiii), (xiv) and (xv) therein and insertion of clauses (v), (vi) and (vii) in sub-section (2) of section 56 of the Income-tax Act, 1961 ('Act'), the gifts became taxable in the hands of recipient w.e.f. 1-4-2005. The said Circular No. 447 had therefore become inapplicable with the change in law and is to be treated as overridden by the aforesaid statutory provisions w.e.f. 1-4-2005.

3. Further, in terms of provisions of clause (17A) of section 10, Central Government approves awards instituted by Central Government, State Government or other bodies as also the purposes for rewards instituted by Central Government or State Government from time to time. Tax exemption can be sought by eligible persons in respect of awards or rewards covered by such approvals.

Allowability Tax Exemption to any Awards / Rewards instituted in the public interest [Section 10(17A)]

Any payment made, whether in cash or in kind, (i) in pursuance of any award instituted in the public interest by the Central Government or any State Government or instituted by any other body and approved by the Central Government in this behalf; or (ii)    as a reward by the Central Government or any State Government for such purposes as may be approved by the Central Government in this behalf in the public interest is exempt under Section 10(17A). The provisions of section 10(17A) of the Act read as :

Text of Section 10(17A)

^[1][Incomes not included in total income.

10. In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included -

(17A). any payment made, whether in cash or in kind,-

  (i)     in pursuance of any award instituted in the public interest by the Central Government or any State Government or instituted by any other body and approved by the Central Government in this behalf; or

 (ii)    as a reward by the Central Government or any State Government for such purposes as may be approved by the Central Government in this behalf in the public interest;]

My Opinion:

We should take the benefit of Section 10(17A)