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NIKIT SHETH (Chartered Accountant)     09 December 2010

Income from owning and maintaining race horses

Income from owning and maintaining race horses is taxable under which head of income and at what rate?

 25 Replies

CA Sahil Singla..

CA Sahil Singla.. (Service Tax )     09 December 2010

taxable under other sources at 30% + 10 %surcharge +3% CESS if applicable 

Paresh Rathod

Paresh Rathod (CA)     09 December 2010

Sec. 115BB

Winnings from lotteries, crossword puzzles, or race including horse race (not being income from the activity of owning and maintaining race horse) or card game and other game of any sort or from gambling or betting of any form or nature

Taxable at - 30% + 2% Edu. cess + 1% SHEC

1 Like
CA Amit surana

CA Amit surana (C.A.)     09 December 2010




Taxable under head I.F.O.S.  ..

normal tax rate are applied for taxability

1 Like
Max Payne

Max Payne (employed)     09 December 2010

Originally posted by : amit surana


Agree - normal slab rate, IFOS - Absolutely.

 I think other members have confused themselves with explanation winning from races including horse races, which is covered u/s 115BB


Rajesh (Articled Clerk)     09 December 2010

I agree with you .G.K.. It is taxable under other sources


Misha (CCI STUDENT.....)     09 December 2010

Taxable under head other sources at normal slab rate.


It is taxable under PGBP and is taxable at normal slab rate since from last two years i m doing accounting as well as filing return of person who is owning and maintaing race horses in Pune Race Course.


Adityakumarhv (CA Final)     10 December 2010

I agree with paresh rathod

swati arora

swati arora (CA & CS student)     10 December 2010

Taxable under "Income from other source"

Normal slab rate + education cess is applicable.

Manoj B. Gavali

Manoj B. Gavali (Tax Professional and in Service)     10 December 2010

 Income from owning and maintaining race horses is a specific item of income covered by the section 56(2)(ib) of the income tax act. Section 56 tells us the specific type of income which is taxable under the head Income from other source, thus 100% it is taxable under the head of income from other sources. As no special rate prescribed for such income under the income tax act, it would be taxable at the normal rate as per slab rates.





CS LLB Pulkit Gupta

CS LLB Pulkit Gupta (     10 December 2010


 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 or card game and 
other game of any sort or from gabling or betting of any form, tax shall be 
calculated at the rate of 30% of such income plus surcharge. 
 The taxability of income in the nature of winnings from any lotteries, 
crossword puzzles, race, etc. are subject to the following:  
(a) No expenditure or allowance can be allowed against such income; 
(b) No deduction under Chapter VI-A can be allowed; 
(c) No benefit of carry forward and set off of loss/unabsorbed depreciation 
allowance is available against such income; and 
(d) No basic exemption limit is available.  
Loss from owning and maintenance of horses shall be set-off only out of the income  form owning and maintenance of horses. This means that loss from the activity of owning and maintaining race horses cannot be set-off against any other income falling under the head “Other Sources”.

Nishi (CA Final Student)     10 December 2010

Totally agreed with Manoj bhaiya........

It  is taxable under sec 56 and no special rate is there.......

it will taxed at the normal slab rate..


NIKIT SHETH (Chartered Accountant)     10 December 2010

Hey Thanks to all of yoy.........

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