Should TDS From Prize Money Be Refunded To A Person Having No Taxable Income?

I want to know about TDS, since I won a contest in which I got 1 Lakh cash prize and TDS of 33.6% is deducted from that amount, since I am a student with no income, so whether that amount will be refunded to me and if yes how. Atul Vohra , Shimla

No, the amount of tax deducted will not be refunded to you because the tax on lottery or prize has to be paid by a person even if the taxable income of the person  is below exemption limit.

The reason is that the tax on the prize or lottery is payable under  section  115BB oof the I T Act , which provides a a special rate of tax has been prescribed under section 115BB of the the I T Act.

115BB. Where the total income of an assessee includes any income by way of winnings from any lottery or crossword puzzle or race including horse race (not being income from the activity of owning and maintaining race horses) or card game and other game of any sort or from gambling or betting of any form or nature whatsoever, the income-tax payable shall be the aggregate of

(i) the amount of income-tax calculated on income by way of winnings from such lottery or crossword puzzle or race including horse race or card game and other game of any sort or from gambling or betting of any form or nature whatsoever, at the rate of  thirty per cent; and

(ii) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause (i).

No exemption of even basic amount is provided . It means that if a person has no taxable income , and he wins lottery or other kind of prize of even Rs 20,000 , he will have to pay tax. He can not claim that since Rs 20,000 is below exemption limit, no tax is payable.No loss or expense is adjustable with the income from winnings of prizes or lottery.