MYCLOTH INDIA SKILL BASED CHALLENGE

TAX / WITHHOLDING & STATUTORY-COMPLIANCE RULES

Challenge Year: 2026
Organised by: MyCloth India
Official Website: MyCloth.in
Official Time Zone: Indian Standard Time (IST, UTC+5:30)
Winner Structure: ONE Rank #1 Winner ONLY
Maximum Advertised Prize: Up to ₹15,00,000 Only
Participation Fee: ₹0 — 100% Free

1. PURPOSE OF THIS PAGE

This page explains the general tax, withholding, reporting and statutory-compliance principles applicable to the Prize Money payable under the MYCLOTH INDIA SKILL BASED CHALLENGE 2026.

It is intentionally limited to tax, withholding and statutory-compliance matters.

It does not replace or repeat:

• the official Challenge Terms & Conditions;

• Prize Amount & Calculation Formula;

• Master Date Schedule;

• Tie-Break Mechanism;

• Participant Advertising & Content Policy;

• Fraud Prevention & Disqualification Rules; or

• Winner Identity Verification & Prize Payment Rules.

Those documents continue to govern their respective subjects.

2. PRIZE PAYMENT IS SUBJECT TO APPLICABLE LAW

Any Prize Money payable to the verified Rank #1 Winner is subject to the tax, withholding, reporting, banking, regulatory and other statutory requirements applicable at the relevant time.

MyCloth India will administer the Prize in accordance with the laws and regulations applicable to the payment.

The applicable law shall be determined with reference to the relevant facts, the nature of the payment, the status of the recipient, the timing of payment or credit and other legally relevant circumstances.

3. TAX LAW IN FORCE AT THE TIME OF PAYMENT

The tax treatment of the Prize shall be determined under the income-tax law applicable to the relevant payment or credit.

For payments or credits occurring on or after 1 April 2026, the Income-tax Act, 2025 and the applicable rules, Finance Act provisions, notifications, circulars and other legally applicable requirements may govern the relevant tax and withholding obligations.

The Income Tax Department has stated that the Income-tax Act, 2025 applies for Tax Year 2026–27 onwards and that TDS provisions have been reorganised under the new Act.

Accordingly, MyCloth India will not rely on an outdated tax-section reference where the law applicable at the time of payment requires a different provision or reporting mechanism.

4. TAX CHARACTERISATION OF THE PRIZE

The tax treatment of the Prize will depend on its legally applicable characterisation.

The fact that the payment is described commercially as a Prize Money, Reward, Challenge Prize or similar term does not, by itself, determine its legal or tax classification.

MyCloth India will apply the applicable tax and withholding provisions based on the actual nature of the Challenge, the payment and the Winner's circumstances.

Nothing on this page should be interpreted as a determination that the Challenge or Prize necessarily falls within any particular statutory category of winnings.

5. WITHHOLDING TAX

Where applicable law requires MyCloth India to deduct or withhold tax from the Prize Money, MyCloth India may deduct the required amount before making the net payment to the Winner.

The Winner will receive the applicable balance after any legally required withholding or deduction.

The withholding rate and amount will be determined according to the law applicable to the relevant payment or credit.

MyCloth India will not voluntarily represent a particular withholding rate as universally applicable where the applicable law may depend on the legal characterisation of the payment or the Winner's circumstances.

6. NO GUARANTEE OF A FIXED NET PRIZE

The published Prize Amount is the applicable gross Prize Amount, unless an official communication expressly states otherwise.

The amount actually credited to the Winner's bank account may be lower where tax or another legally required deduction must be made.

Accordingly:

Published Prize Amount ≠ necessarily the final post-tax amount received by the Winner.

The final net amount will depend on applicable statutory deductions and other lawful payment adjustments.

7. SPECIFIED WINNINGS AND SPECIAL TAX PROVISIONS

Indian income-tax law contains special provisions dealing with certain categories of winnings and corresponding withholding requirements.

For example, current 2026 tax materials provide a 30% rate for specified winnings from lotteries, puzzles, card games and other games of any sort, excluding online-game winnings covered separately.

However, MyCloth India will not automatically classify the MYCLOTH INDIA SKILL BASED CHALLENGE as falling within such a category solely because it has a Prize.

The legally applicable classification must be determined from the actual Challenge mechanics and the law applicable to the payment.

Where a special statutory withholding provision applies, MyCloth India will comply with that provision.

8. PARTICIPANT / WINNER TAX RESPONSIBILITY

The Winner is responsible for complying with the Winner's own applicable income-tax and other tax obligations arising from receipt of the Prize.

This may include, depending on the Winner's circumstances:

• reporting the Prize or related income;

• paying any tax not fully satisfied through withholding;

• maintaining supporting records;

• responding to tax-authority requirements; and

• complying with applicable return-filing obligations.

MyCloth India's withholding, if applicable, does not necessarily extinguish every tax obligation of the Winner.

9. MYCLOTH INDIA'S WITHHOLDING RESPONSIBILITY

Where MyCloth India is legally required to deduct or withhold tax, it will make the required deduction or withholding in accordance with the applicable law.

MyCloth India may also:

• obtain tax-related information;

• verify applicable tax details;

• obtain declarations where legally appropriate;

• make required filings;

• deposit withheld tax with the appropriate authority;

• maintain statutory records; and

• provide applicable tax documentation or certificates where required.

10. TAX IDENTIFICATION AND DOCUMENTATION

The Winner may be required to provide tax-related information reasonably necessary for lawful Prize administration.

This may include, where applicable:

• Permanent Account Number (PAN);

• tax residency information;

• taxpayer identification information;

• declarations;

• statutory forms;

• documentation relating to withholding; or

• other information required under applicable law.

The specific information requested will depend on the Winner's circumstances and the legal requirements applicable at the time.

11. PAN / TAX IDENTIFICATION

Where applicable law requires the Winner's PAN or another tax identification number for withholding, reporting, payment or compliance purposes, the Winner must provide accurate information.

A failure to provide required tax information may affect the applicable withholding treatment or the ability to complete lawful Prize payment.

MyCloth India may request additional information where required to comply with applicable law.

12. RESIDENT AND NON-RESIDENT WINNERS

The applicable tax and withholding treatment may differ depending on whether the Winner is:

• resident in India;

• non-resident in India; or

• otherwise subject to a different tax status under applicable law.

Where relevant, MyCloth India may request information reasonably necessary to determine the applicable tax and withholding framework.

The Winner is responsible for providing truthful and complete information relevant to the Winner's tax status.

13. DOUBLE TAXATION AND TAX TREATIES

Where a Winner claims a benefit under an applicable tax treaty or other statutory provision, MyCloth India may require the documentation legally necessary to evaluate or apply that treatment.

Such documentation may include, where applicable:

• tax-residency documentation;

• prescribed declarations;

• certificates;

• forms; or

• other legally required evidence.

A treaty or statutory benefit will not be applied merely because a Winner requests it.

The applicable legal conditions must be satisfied.

14. NON-RESIDENT OR CROSS-BORDER PAYMENT

Where the Winner is not resident in India or where a cross-border payment issue arises, MyCloth India may apply the tax, foreign-exchange, banking, reporting and other statutory requirements applicable to the payment.

Additional documentation may therefore be required before payment can be completed.

The existence of an international or non-resident Winner does not create an automatic entitlement to a particular tax treatment.

15. PAYMENT IN INDIAN RUPEES

Unless otherwise expressly stated by MyCloth India in an official communication, the published Prize Amount is denominated in Indian Rupees (INR).

Any currency conversion, foreign-bank transfer or related banking requirement, where legally permitted, may be subject to applicable banking, foreign-exchange, payment-processing and statutory requirements.

16. NO TAX ADVICE

Information published on this page is general administrative information concerning MyCloth India's Prize-payment and compliance process.

It is not individual tax, accounting or legal advice.

The Winner should obtain independent advice from a qualified tax professional where the Winner requires advice concerning:

• personal tax liability;

• tax residency;

• return filing;

• treaty benefits;

• business/professional income;

• deductions;

• tax credits;

• foreign taxation; or

• any other individual tax matter.

17. TAX WITHHOLDING DOES NOT CHANGE THE WINNER

A tax deduction or withholding does not:

• change the Rank #1 Winner;

• change the final ranking;

• change the applicable Prize Amount;

• create another Winner; or

• alter the Challenge's Tie-Break Mechanism.

It is only a statutory payment-compliance mechanism where applicable.

18. TAX DEDUCTION DOES NOT MEAN MYCLOTH SETS THE WINNER'S FINAL TAX LIABILITY

Where MyCloth India deducts tax at source, the deduction is made to satisfy the applicable statutory withholding obligation.

The Winner's ultimate tax position may depend on the Winner's complete tax circumstances and applicable law.

Accordingly, the amount withheld by MyCloth India should not automatically be interpreted as a guarantee that:

the amount withheld is the Winner's complete and final tax liability in every circumstance.

The Winner remains responsible for the Winner's own tax compliance.

19. TAX RECORDS AND CERTIFICATES

Where required by applicable law, MyCloth India may maintain records relating to:

• Prize Amount;

• payment date;

• tax deducted or withheld;

• applicable tax identification information;

• statutory reporting; and

• Prize payment.

Where the law requires MyCloth India to issue or make available a tax certificate, statement or other statutory document, MyCloth India will do so in accordance with the applicable requirements.

20. STATUTORY REPORTING

MyCloth India may report the Prize payment and applicable withholding information to government authorities or statutory systems where required by law.

Such reporting may include information required for:

• tax deduction and withholding;

• statutory returns;

• information statements;

• banking/payment compliance;

• accounting records; or

• other legally required reporting.

21. ACCOUNTING AND RECORDKEEPING

MyCloth India may maintain appropriate accounting and statutory records relating to the Prize.

Such records may include:

• final Prize Amount;

• Winner details necessary for compliance;

• tax calculations;

• withholding records;

• payment records;

• statutory filings;

• bank-transfer records; and

• supporting verification records.

Records will be retained in accordance with applicable legal, accounting, tax, privacy and business-record requirements.

22. STATUTORY CHANGES

Tax and statutory requirements may change between the Challenge commencement date and the actual Prize payment date.

If the applicable law changes before the Prize is paid, MyCloth India will apply the law legally applicable to the relevant payment or credit.

Accordingly, an earlier published reference to a tax rate, section, form or procedure should not be interpreted as overriding a later mandatory legal requirement.

23. NO PROMISE OF A PARTICULAR TAX RATE

MyCloth India does not guarantee in advance that:

• no tax will be deducted;

• a particular tax rate will apply;

• the Winner will receive the full gross Prize Amount;

• the Winner will have no additional tax liability; or

• a particular tax classification will apply.

The applicable law and the actual facts of the payment will determine the relevant treatment.

24. WITHHOLDING WHERE REQUIRED BY LAW

If applicable law requires withholding before release of the Prize, MyCloth India may withhold the legally required amount.

The Winner will not be entitled to demand payment of the withheld amount merely because the published Prize Amount was advertised as a gross amount.

Any dispute regarding the Winner's ultimate tax liability is separate from MyCloth India's obligation to comply with mandatory withholding requirements.

25. STATUTORY COMPLIANCE BEYOND INCOME TAX

Prize administration may also be subject to other applicable statutory or regulatory requirements, including where relevant:

• banking requirements;

• payment-system requirements;

• foreign-exchange requirements;

• identity verification;

• anti-fraud controls;

• accounting requirements;

• data-protection requirements;

• consumer-protection requirements; and

• other mandatory legal requirements.

MyCloth India may request reasonable information or documentation necessary to comply with such requirements.

26. NO ILLEGAL TAX AVOIDANCE OR EVASION

Neither the Winner nor MyCloth India may use the Challenge Prize-payment process to evade or unlawfully avoid applicable tax or statutory obligations.

The Prize will be administered using lawful payment and compliance procedures.

Any arrangement requested by a Winner that would require MyCloth India to knowingly violate applicable tax, banking, reporting or other law may be refused.

27. PAYMENT MAY BE HELD PENDING MANDATORY COMPLIANCE

Where legally necessary, Prize payment may be delayed until required:

• identity verification;

• tax information;

• statutory documentation;

• withholding calculation;

• banking verification;

• compliance review; or

• other mandatory requirements

have been satisfactorily completed.

This operates together with the published Winner Identity Verification & Prize Payment Rules.

28. RELATIONSHIP WITH WINNER VERIFICATION RULES

The Winner Identity Verification & Prize Payment Rules govern the overall Winner verification and payment procedure.

This page provides the dedicated tax and statutory-compliance framework within that procedure.

It does not create a separate Winner verification process or a separate Prize-payment deadline.

29. RELATIONSHIP WITH THE OTHER OFFICIAL CHALLENGE DOCUMENTS

This page should be read together with the official Challenge framework:

1. Official Terms & Conditions — overall Challenge rules;

2. Master Date Schedule 2026 — official dates and deadlines;

3. Prize Amount & Calculation Formula — applicable Prize calculation;

4. Tie-Break Mechanism — objective final ranking;

5. Participant Advertising & Content Policy — promotional conduct;

6. Fraud Prevention & Disqualification Rules — fraud, invalidation and disqualification;

7. Winner Identity Verification & Prize Payment Rules — Winner verification and payment; and

8. Tax / Withholding & Statutory-Compliance Rules — tax and statutory payment compliance.

No provision of this page is intended to silently modify the substantive Challenge qualification, ranking or Prize-calculation rules.

30. OFFICIAL RECORDS CONTROL

For tax, withholding and statutory-compliance purposes, MyCloth India's official accounting, payment and statutory records may be used as evidence of:

• Prize Amount;

• payment;

• withholding;

• statutory deductions;

• reporting; and

• related compliance actions,

subject to correction of demonstrable errors and applicable law.

31. LEGAL REQUIREMENTS PREVAIL

If a mandatory provision of applicable tax, banking, regulatory or other law conflicts with an administrative statement on this page, the mandatory legal requirement will prevail to the extent of the conflict.

MyCloth India may update administrative wording where necessary to reflect changes in applicable law.

32. NO RETROACTIVE TAX PROMISE

No statement published by MyCloth India should be interpreted as a guarantee that the tax treatment applicable at the beginning of the Challenge will necessarily be identical to the treatment applicable when the Prize is actually paid.

The law applicable to the relevant payment or credit will govern.

33. FINAL TAX & COMPLIANCE PRINCIPLE

The MYCLOTH INDIA SKILL BASED CHALLENGE follows this principle:

Published Prize Amount → Final Winner Verification → Determine Applicable Legal/Tax Treatment → Apply Required Withholding/Statutory Compliance → Net Prize Payment

The applicable tax and statutory requirements are applied as required by law.

OFFICIAL DECLARATION

The MYCLOTH INDIA SKILL BASED CHALLENGE 2026 does not promise a tax-free Prize.

The published Prize Amount is subject to applicable tax, withholding, banking, statutory and regulatory requirements.

Where withholding or another statutory deduction is legally required, MyCloth India may make the applicable deduction before releasing the balance to the verified Rank #1 Winner.

The Winner remains responsible for the Winner's own tax and statutory obligations that may legally apply.

MyCloth India will comply with the law applicable to the Prize payment at the relevant time.

No tax-free Prize is promised.
No fixed net amount is guaranteed.
Applicable law governs.

MYCLOTH INDIA SKILL BASED CHALLENGE — 2026

One Challenge. One Rank #1. One Winner.

Official Website: MyCloth.in