Accounting treatment of winning a car in lottery
This query is : Resolved
Md Aadil Ansari
(Querist)
21 April 2017
winning a car in lottery worth RS 456150 and tds
has been deducted of RS 136845 and the person who has won the car has to pay the tax Amt as well as insurance and other charges aggregating to RS 269766 what should be the accounting treatment and tax effect of it
22 April 2017
Winning from lottery should be shown under the head "Income from other sources". The insurance and other charges can be shown as expenses in the books.
22 April 2017
1. Car a/c Dr 4,56,150
Insurance etc a/c Dr 1,32,921
To Cash 1,32,921
" Income from other sources 4,56,150
2. TDS Dr 1,36,845
To Cash 1,36,845
Ps:- 1. Insurance etc can be capitalized
2. TDS can be claimed while filing income tax return in which Rs. 456,150 also has to be offered as income from other sources.
Insurance etc a/c Dr 1,32,921
To Cash 1,32,921
" Income from other sources 4,56,150
2. TDS Dr 1,36,845
To Cash 1,36,845
Ps:- 1. Insurance etc can be capitalized
2. TDS can be claimed while filing income tax return in which Rs. 456,150 also has to be offered as income from other sources.
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