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winning from lottery

CA GAURAV GUPTA (CA in JOB) (38 Points)

22 February 2010

Can any one tell mew what will be the tax treatment of an individual who has no income other than Lottery income during the current year.and lottery income is amounting to Rs. 100000/- only.but Current year exemption limit for individual is Rs. 160000/-.

Now is he eligible to get exemption or shall be taxed at higher rate @ 30%??????????

pls also give explaination to me so that i can undrstand properly???????//

thanks for ur reply...........

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28 Replies

Amir (Learner) (4016 Points)
Replied 22 February 2010

Dear Gaurav,

exemption limit is not available in case of Lottery Income......& is taxable @ Flat 30%

1 Like

Amir (Learner) (4016 Points)
Replied 22 February 2010

Dear Gaurav,

As far as Explanation is concerned, Sec 115BB is clear which says that where an assessee has Lottery income in his total income then tax shall be computed as follows -

1) On Lottery @ 30%

2) On Other Income - as if this is the total income

That means exemption limit is NOT available in case of lottery, etc

C.Balaji (Learner) (1867 Points)
Replied 22 February 2010

Dear Mr.Amir brother....

Very confusing..............

For eg: Mr.A has only lottery income of Rs. 150000/- deducted TDS @ 30.9%...

which amounts to 46350...

since his income does not exceed Rs.160000 he files a return and claims Rs.46350 as refund.....

Is Mr.A right or wrong????

please reply........

Amir (Learner) (4016 Points)
Replied 22 February 2010

Dear Balaji,

Mr. A cannot claim refund since exemption limit is not available on lottery, etc.....

Himansu Sekhar Pati (CA Final) (208 Points)
Replied 22 February 2010

I think Amir is right

Sumiti Jain (FP) (1364 Points)
Replied 22 February 2010

yes Exemption on lottery income is not allowed

Chintan Shah (-) (534 Points)
Replied 22 February 2010

Yup... Agree with amir... basic exemption limit not applicable in case of lottery income... taxable at 30%...

C.Balaji (Learner) (1867 Points)
Replied 22 February 2010

Dear Amir....

then what does the term "BASIC EXEMPTION" mean???

Chintan Shah (-) (534 Points)
Replied 22 February 2010

Yup... Agree with amir... basic exemption limit not applicable in case of lottery income... taxable at 30%...

Amir (Learner) (4016 Points)
Replied 22 February 2010

Dear Balaji,

The term basic exemption has not been used anywhere....Its just a term used as per parlance.....

CA kuldeep kothari (own practice) (375 Points)
Replied 22 February 2010

lottery is taxable at a flat rate of 30% irrespecptive of what the total income is. if in any a.y. if the total income falls short of basic exemption limit this is called short fall. LTCG n STCG are also taxable at different rates n no deduction cn be claimed frm them but THEY CAN BE USED TO fill this shortfall. sec 115BB clearly says no exemption or deduction is allowed on lottery income . nor the assessee cn claim refund later on.