Tax liability

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2011 mr.kala, a sole prop.in a firm wins a chance to go to a tour with his family outside the country, cost of the tour rs.650000/-

any body tell me the cost of the above would be added his total income at time of tax computaion.

(please give ur answer in simple words and in short form)

Aijaz Shaikh

Aijaz Shaikh (Expert)

02 December 2011 91[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 92[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.]

Conclusion
Since there is no income to the assessee it is not taxable.

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