Income Tax on lottery winning outside India by ordinary resident

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Sumit Ramesh Bhalerao (Querist)

14 August 2017 Hello, Please let me know Income Tax treatment for following scenario; 1. The Person has won Lottery of Rs. 10,00,00,000 /- in United States of America, and they have deducted federal tax @ 30% and decided to remitt Rs. 7,00,00,000 /- to that person... 2. The person is Ordinary Resident and he has gone there on Tourist Visa..So he don't have NRE or NRO account as he is not NRI..he was there for 1 month only.. Now below are my questions A) Can he deposit his foreign currency cheque to his normal Indian saving bank account ?? and if yes then how much days it will take to credit the money in his account ????? B) What will be the tax treatment.. will he get benefit of Federal tax Deducted at Source by US..as If he shows Income of Rs. 10,00,00,000/- the Indian Income Tax will be around Rs. 3,50,00,000/- and US has already deducted Rs. 3,00,00,000/- so what will be his tax liability??? (Rs.3,50,00,000 - Rs. 3,00,00,000= Rs. 50,00,000/-) OR (Rs.3,50,00,000 + Rs. 3,00,00,000= Rs. 6,50,00,000/-) C) OR Is he has to pay tax on 7,00,00,000/- i.e 2,48,50,000/- So his total Tax will be Rs. Rs. 3,00,00,000 + Rs. 2,48,50,000 = Rs. 5,48,50,000/- D) If he gets benefit of Federal tax deduction then how to show in Income Tax return and where is column in Excel file of return to fill the details?? Kindly clarify ASAP..awaiting reply....quick response is expected from you guys..

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 August 2017 A Yes He can deposit the in his savings account. Check up with the bank the time taken it will not be more than 10 days.
B Yes he will get benefit of federal tax deduction and need to pay only 50 Lacs tax in
India.
C Claim relief in return FSI and TR schedule. File Form No 67 to claim relief.
The statement in Form No.67 referred to in clause (i) of sub-rule (8) and the certificate or the statement referred to in clause (ii) of sub-rule (8) shall be furnished on or before the due date specified for furnishing the return of income under sub-section (1) of section 139, in the manner specified for furnishing such return of income.

See the link for more information.
https://incometaxindia.gov.in/Rules/Income-Tax%20Rules/rule128.htm

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Sumit Ramesh Bhalerao

Sumit Ramesh Bhalerao (Querist)

15 August 2017 thank you so much Sir, for prompt and positive response..

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