On winning from lottery, cross words puzzles etc

[DEVKUMAR KOTHARI]

KAUN BANEGA CROREPATI  (KBC) – participation is a  long-term ,serious , hardworking  effort and  activity requiring  skills  and decision making , risk taking at many stages. KBC is like a competitive examination which involves entrance test , intermediate test and final test all based on multiple choice questions to be answered. Therefore, it  must not be regarded or equated with ‘ game’  for taxing winnings in KBC @ 30% - a point of view for brain storming.

Participation in KBC is a serious hardworking long-term effort of not only participants but also of many family members:

On viewing many series and many episodes therein we find that it requires lot of efforts over a fairly long period of time.

Many participants  reached  hot seat of KBC after efforts of decades. In some cases, parent started efforts very early and continued along with children and then reached to  the hot seat, in some cases parent could not reach but his/ her children who joined efforts could reach hot seat.

It requires lot of regular studies, efforts, collection of information and knowledge, storing such knowledge , information and data base  and also practice for memory recall at various stages of preparation and  participation in KBC with a view to earn name , fame and  money and  to meet Shri Amitabh Bachhan. 

Except in case of celebrities invited at KBC, and some  series for kids, most of participants have made efforts of more than five years. Even in case of KIDS special series, even kids made efforts of many years and in some cases parents made efforts to enable children to have participation in KBC.

KBC is not an entertainment for participants:

No doubt , KBC is a TV show, it is for  entertainment  of  crores of viewers.

However,  it is not for entertainment for Shri Amitabh Bachhan  in a TV show, he  is working with his special skills  and earning professional fees from Sony TV. His income is taxable as his income from profession.

 Likewise it is not for entertainment of participants who reach the hot seat of KBC, after relentless, long-term , serious efforts to answer questions asked in KBC and to earn rewards.

The award so won cannot be equated with awards in a game show or a  TV show .

By whatever name it be described the fact is that by making relentless efforts over a long period of time participant reaches the hot seat and at each stage he has to be attentive.

Not a chance game:

Answering questions asked at KBC cannot be described as a mere chance game. While selecting answer the participant has to apply his mind, recall his memories, apply  his knowledge and skill to eliminate some of options given , apply his skills and take decision as to whether he can answer the question himself or he can take help of any help lines provided and available to him at particular question. He has to decide which help to take, in case of phono friend/ vide friend he has consciously decided and given few names to whom he can call, at the time of taking help he has to again apply mind and decide to whom he should preferable call to find best help to answer the question.

Sometimes he has to decide whether to receive cash money available to him by answering certain questions or to avail revival of any help line, which he has already used and can be revived by surrendering the bonus money  he has earned by answering some of questions.

At some stages, he has to decide whether to continue or quit.

These are few examples in which we find that even after reaching the hot seat, the participant has to be very alert, attentive, have positive attitude, be in position to recall his knowledge, information and data base in his mind beside he has still to  be careful in answering the questions.

He also need to be careful to avoid excessive greed and too decide whether to take a risk or quit the show.

Answering questions based on multiple choice /options is not a game:

In many of examinations  answering questions based on multiple options provided is essential part. In some of examinations this sort of questions are having full or a large part of total numbers to score.

In competitive examinations MCQ  started long ago, in some of entrance examinations like for medical courses, engineering courses MCQ are only type or major type of questions to be answered.

Author recall that in the year 1972 when he appeared for Madhyamika Board examination, MCQ question papers were provided for about 20 percent of total marks in most of subjects.

The MCQ question papers were given at beginning of  each subjects  examination ,  and was to be returned duly answered within 30 minutes.

Thereafter, descriptive  answer sheets  were to be written by examinee. One could complete MCQ earlier, and decide to take up other question paper and start writing descriptive part of examination paper.  That was perhaps first or second batch in which MCQ papers were provided.

Even  while answering MCQ questions, one may have to take a chance. Suppose out of four options , two are eliminated, then out of two remaining what could be best possible answer is to be decided and some time to take a chance or not to take a chance is to be decided.  IN case of MCQ also in nay examination if negative marking is a rule, then sometimes not answering the answer a question can be preferable when the examinee is unable to recall a proper answer. Similarly in KBC , one has to decide not to answer a question and  choose for option to avail other question, if allowed or to quit the effort ( not really a game) so as to save the earnings alreade may to come down to Rs. 10K orRs. 320K, as the case may be.

The feature Jaldi Jaldi at KBC:

In the feature Jaldi jaldi, two contestants who come for pre hot  seat have to answer certain questions. Once any of candidate completes answers of five questions, he is selected to reach on the hot seat,and other one can again participate for Jaldi – Jaldi session. This cannot be called a simple game to contest and win. This is a sort of entrance examination. On completing it he will be eligible to face questions  sitting on  the hot seat .

Therefore, answering out of four options provided at KBC does not and cannot be called a chance theory or a game theory or probability game etc. to describe KBC forum as a TV show to win prizes.

Income of previous year is taxable:

As per section 4- the charging section in the Income-tax Act , the income of previous year is taxable for any year. As discussed above rewards earned at KBC is result of continuing long-term efforts of many years , therefore, considering entire sum rewarded is not income of any one previous year. It is materialization and realization of accumulated earning for a long period of time. The period can be measured with reference when efforts were started and made from year to year to reach the hot seat.

Help of others- team work:

We find that in reaching the hot seat, family members, friends, also help. In case of using help lines provided the audience extend held and support, the friend called over phone or video also help. Therefore, it is a teamwork and can be considered an organized activity to earn money, name and fame etc.

Therefore, expenses incurred over the long period and remuneration for teammates who helped in reaching the hot seat and performing at hot seat can also be  an allowable out go.

Privilege ask  the expert is  provided free of cost by KBC organizers to the participants, help of audience is totally voluntary and free of cost, however, ask the friend over phone or video is a part of team work and if there is an understanding to share the reward money  and is actually shares, that that part of cost is a legitimate  out go from the reward money.

The reward is in fact earnings from personal skills , efforts and help of team mates. Therefore, the reward won is in nature of remuneration for the efforts and cannot simply be described as ‘prize money’ at a game or TV show etc.

The reward money should be considered as gross receipt and its reasonable allocation for earlier years  and for teammates should be allowed  to determine real income of the previous year as taxable income.

Relevant provisions for study brain storming  to make out a case of normal income:

Section 2 (24) – definition of income clauses (ix).

Section 4 – the charging section.

Section 115BB -  Tax on  winning from lottery, cross words puzzles etc

Section 115BBJ – Tax on winning from online games

Section 194B    -TDS on  winning from lottery, cross words puzzles etc.

Section 194BA – TDS on winning from online games.

This is just a preliminary effort of the author to jot down important issues for brain storming and working.

 Author find that earnings at KBC should be considered as income from a vocation and an occupation carried in a team effort manner with a set of objectives. That includes self-development, team efforts, learning , sharing information , knowledge and experience and such earning should not fall in category of prizes for games chances, probabilities , TV show , Entertainment show etc. so as to attract tax @ 30% under sections as pointed out above.

Readers are requested to  provide their views and feedback on related aspects.