I have won a programming competition based in US, and i will be getting $800 from the US based company. They are telling me that they will pay the taxes already and will give me the full amount. Now, would i have to pay special 30% tax to Indian govt. also?
I've searched over internet but could not reach any conclusion. From what i have researched, there is DTAA b/w India and US, and i believe my earning will be regarded as prize money and will be eligible for special 30% tax. Also i am a resident of India and i am a student who never paid tax earlier.
I think the tax can be avoided under DTAA? Can someone please tell the procedure or tell me where i am wrong? Also what is the best way to not pay double tax as paying company is already paying taxes to US govt.