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Accounting treatment of winning a car in lottery

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This query is : Resolved

Md Aadil Ansari (Querist)
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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

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay (Expert)
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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.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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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.

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