Tax woes continue to haunt 1st KBC winner

Harshvardhan Nawathe, who won the Rs 1-crore (Rs 10 million) prize money on quiz show 'Kaun Banega Crorepati', continues to face queries on his tax liability even nine years after he emerged as the winner of the popular television reality show.

The Bombay high court last week admitted an appeal filed by the I-T department challenging the order of the Income Tax Appellate Tribunal which in 2008 rejected the department's additional claim under 115bb of the Income Tax Act.

Nawathe had added his prize money to his regular income and had calculated his tax liability as per normal taxation provisions. He had paid Rs 35 lakh (Rs 3.5 million) towards tax. The tax department, however, stated that the prize money has to be calculated under section 115bb of the Income Tax Act and the tax under this act is payable at a special rate.

"We have approached the High Court based on section 115bb of the Act, which states that winnings from lotteries, puzzles or racing have to be taxed at 40 per cent," Suresh Kumar, counsel for the I-T department said.