First KBC winner faces I-T woes

Harshvardhan Nawathe, who had bagged the Rs one crore prize money on quiz show Kaun Banega Crorepati (KBC) nine years ago, is now facing trouble from the Income Tax (I-T) department.

Harshvardhan Nawathe, who had bagged the Rs one crore prize money on quiz show Kaun Banega Crorepati (KBC) nine years ago, is now facing trouble from the Income Tax (I-T) department.

Kaun Banega Crorepati's first winner Harshvardhan Nawathe

The Bombay High Court had last week, admitted an appeal filed by the I-T department challenging the order of the Income Tax Appellate Tribunal, which had waved off Nawathe's tax liability of about 40 per cent on the winnings in 2000-2001.

Nawathe had added his prize money with his regular earnings and had computed it as per normal taxation provisions. He had paid Rs 35 lakh 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 races have to be taxed at 40 per cent," Suresh Kumar, counsel for the I-T department said.

The tax department had first approached the tribunal, which however rejected the additional claim last year. Following this, the tax deaprtment approached the High Court. The matter will come up for hearing in due course.