If you are a lucky winner of the kbc lottery, the question that may pop up in your head is: Who pays the money to the winner of the KBC? Well, KBC has insurance for unforeseen losses, such as Amitabh Bachchan’s non-appearance or non-availability. In such a scenario, the KBC would only be responsible for paying up to Rs 25 lakhs and the expenses of two or three members of the winner’s family.
Taxes on lottery winnings
The federal government levies tax on lottery winnings according to federal tax brackets. There are varying rates for winnings, and the amount of tax you owe can be a substantial percentage of your total prize. For example, if you win the jackpot in New York, you will pay approximately 8.82% in federal income taxes. In other states, your tax rate will be significantly lower, but it can still be a significant chunk of your prize. If you are a big lottery winner in New Jersey, you may not be liable to pay any taxes on your prize money in that state.
Fortunately, you can use your winnings to help charity. The American Institute of CPAs recommends that you donate as much as 60 percent of your lottery winnings to charities. However, you can also use the money to set up a donor-advised fund, create a private foundation, or invest it. This allows you to choose where to deploy your prize money. If you do not reduce your income, you will owe the IRS another $13.7 million in taxes, which would cut into your windfall.
Contestants’ life after winning
While the contestants are still in their early twenties, their life after winning the KBC has changed drastically. Some of the winners are running their own businesses, investing in new technologies, and going back to school to improve their qualifications. Others are still pursuing their passions, such as fashion designer Harshvardhan. Some even went to the UK to pursue their MBA. The most interesting story is the one of Taj Mohammed, who won Rs 10 million after quitting the show. He used the money to treat his daughter’s eyesight and bought a house and married two orphan girls.
While most contestants use their prize money to pay off debts, others use it to do something different. Several contestants plan to make a difference by helping others. Harshvardhan Nawathe won the ninth season and is now a social worker in his native Kashmir. His wife wants to use the money to help girls in her village. A few other contestants have gone on to start their own businesses, too.
Changes in format
For KBC 7, the show’s sartorial shift and LED-lit set have given it an entirely different look. The judges have changed as well, and Big B has now switched from being a turban wearer to a cloth-clad man. Both of these changes make the show seem more modern, while still maintaining the traditional classiness of the competition. But, what are the changes and what will they mean for the show’s winners?
Previously, the show had a live audience, but that was replaced with a studio audience in the 12th season. The show also introduced a video-a-friend lifeline, allowing contestants to revive their lifeline if it runs out of steam. This feature is likely to return for the 13th season, but viewers will have to wait until then to find out. Hopefully, this will be the last season with live audience participation.
Contestants’ tax obligations
Winning the KBC is a great feeling, but what are the tax responsibilities of contestants? The prize money awarded to contestants during the show is taxable, and as such, contestants should pay the tax owed accordingly. The amount of tax owed on KBC winnings is a flat 30%, plus any applicable cess and surcharge. In 2014, the YSRCP lost the KBC with a 1-2% vote share.
The prize money from the kbc head office is worth more than one crore rupees, but the tax that winners must pay is relatively low. The tax deducted from winnings is thirty-nine percent. Whether you win a million-dollar prize or one lakh rupees, you must understand your tax responsibilities as a contestant. In other words, you must make sure you understand the tax law before winning a game show contest.
Conclusion
Kaun Banega Crorepati’s winners have diversified their careers, from being doctors and lawyers to working as teachers. The most recent season of the show, which is now in its twelfth year, has paid out a cool Rs seven crore to Sanoj Raj, a Jehanabad-based IAS aspirant. He has expressed his desire to spend the money only on the IAS exams and is currently preparing for them.
