Tax on gifts
A prize is something that is won in a competition or a contest, while a gift is something given voluntarily. The key difference is that a prize is earned through a contest whereas a gift is given as a gesture of goodwill, appreciation or affection. A friend of mine recently won an air-conditioner on a scratch gift coupon when he purchased a washing machine. However, the company is asking him to pay Rs 9,000 as TDS (tax deducted at source) before delivery of the gift. Tax Deducted at Source is applicable to prize money and gifts in India because such winnings are considered as income under the Income Tax Act. The government mandates the deduction at source to ensure upfront tax collection on these “windfall gains,” which are typically irregular and not part of a person’s regular earnings. However, this tax should be paid by the organiser or the sponsor. Why should the beneficiary be taxed on such gifts? Gifts and prizes must be exempted from taxation.
Rajesh Banaulikar, Arpora
Step-motherly treatment
It is unfortunate that the Union government has refused to approve the Tamil Nadu government’s detailed project reports (DPRs) for Metro projects in Coimbatore and Madurai on the pretext that the population in both the cities falls below 2 million. When the central government has launched Metro in many smaller cities with a population of less than 2 million in Bharatiya Janata Party (BJP)-ruled states, its denial for Metro projects to the above-named two important cities in Tamil Nadu is tantamount to step-motherly treatment by the BJP government. Immediately after denying Metro projects to Coimbatore, Prime Minister Narendra Modi landed in the city, conducted a road show, with the BJP cadres giving him a floral welcome, and addressed meetings. He also said that the ‘winds of Bihar’ seemed to be blowing in Tamil Nadu too. Does he think that the people of Tamil Nadu are so naive to gauge the BJP plot?
Tharcius S Fernando, Chennai
Zilla Panchayat polls
The State Election Commission (SEC) has reportedly issued a fresh notification announcing that the general election for the North Goa and South Goa Zilla Panchayats scheduled for December 13 has been rescheduled on December 20. However, the poll schedule will not be announced till November 25. It must be said that the Zilla Panchayat elections will coincide with the festive season. During the season, people are busy due to tasks like holiday shopping, decorating and attending events, in addition to end-of-year work obligations. This can lead to increased travel and social commitments, as people prepare to celebrate Christmas and New Year’s Day. Business houses often have year-end closing tasks, and individuals may have to deal with taxes or other financial matters before the year ends. December is a wonderful month full of joy and laughter, family and friends, parties, presents and decorations. As usual, Goa will see a spike of visitors to the state. This will cause traffic congestion on the roads. Catholics will be busy preparing sweets and welcoming relatives from abroad. Church activities will increase manifold. The question that arises is whether it would be in the fitness of things to conduct the Zilla Panchayat elections during the festive season. It is true that the elections will be held only in the villages. Nevertheless, in Goa, much of the Catholic population lives in the villages. Since the poll schedule will not be announced till November 25, if possible, the authorities could consider having the polls at a later date after the festive season.
Adelmo Fernandes, Vasco
Compact package
A German delegation declared at the United Nations (UN) in 1996 that “television is a rich man’s medium”. It was opposing the observance of World Television Day on November 21. The opponents were not impressed about the ability of television to catch people’s imagination as effectively as the radio. From J J Thomson’s cathode ray days of 1887 to its primitive form in the 1920s and to what it is today, from the black and white beauty to the coloured marvel, the evolution of television is surprising and inspiring as well. The vivid accounts of the winners and the losers, the distressed and the saviours, the politicians and the governments, the celebrities and the ordinary make television a special medium. It is a compact package of three in one: education, news and entertainment. Cultural exchange, family bonding, settling questions and creative documentaries are its obvious benefits.
Ganapathi Bhat, Akola
