ESI Deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 April 2010 Plz. answer the following as soon as possible:

1)As PF is caculated on Basic plus DA is ESI calculated on Gross salary ??
2)If Gross Salary exceed Rs.10000/-, ESI is not Deductible??
3)What is the Min. Salary to
deduct ESI & PF ??
4)If TDS is Deducted on Lottery winning,is the TDS Amt.is refundable if the Assessee submits IT Return ???

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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08 April 2010 As per recent amendment , If Gross Salary exceed Rs.15000, then ESI is not deductible.
Min salary to deduct ESI & PF is less than Rs.15000.
Esi is deducted on BASIC PLUS DA NOT ON GROSS SALARY.
As per my view, TDS on lottery income will be deductible if Assessee submit return with refund claim.

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ca dipti sharma

ca dipti sharma (Expert)
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08 April 2010 In my opinion Tds amount will not be refundable.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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08 April 2010 Yes , You are right CA Dipti ji,
TDS amount will not be refundbale because, On the income from lottery , separte Tax will be charged other than tax on normal income as per section 115BB.
Extract of Section 115 BB is below :
Tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting of any form or nature whatsoever.

115BB. Where the total income of an assessee includes any income by way of winnings from any lottery or crossword puzzle or race including horse race (not being income from the activity of owning and maintaining race horses) or card game and other game of any sort or from gambling or betting of any form or nature whatsoever, the income-tax payable shall be the aggregate of—

(i) the amount of income-tax calculated on income by way of winnings from such lottery or crossword puzzle or race including horse race or card game and other game of any sort or from gambling or betting of any form or nature whatsoever, at the rate of 2[thirty] per cent; and

(ii) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause (i).

Explanation.—For the purposes of this section, "horse race" shall have the same meaning as in section 74A.]