Lottery winning
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 March 2018
Case study:
A: Non resident, citizen of India. Settled in UK for past 8 years and resident of UK(but not citizen of UK). 34 years old
B: Resident and citizen of India. 36 years old
If A wins 100 crores in UK lottery and pays mandatory tax of 40%, and shares his 50% income with his Indian friend B (i.e., 50% of 60 crores after UK tax deduction)= 30 crores. The transfer of money is made from UK account of A to Indian bank account of B.
Query:
1) Now does B has to pay 30% slab rate on 30 crores again, though it has already suffered tax in UK?
2) If B is subject to tax again, what are the possible deductions and exemption he can claim.
3) If A brings money to India and deposits in his Indian bank account and transfers to B, can the case bring any change and possible deductions in B's 30 crores.
A: Non resident, citizen of India. Settled in UK for past 8 years and resident of UK(but not citizen of UK). 34 years old
B: Resident and citizen of India. 36 years old
If A wins 100 crores in UK lottery and pays mandatory tax of 40%, and shares his 50% income with his Indian friend B (i.e., 50% of 60 crores after UK tax deduction)= 30 crores. The transfer of money is made from UK account of A to Indian bank account of B.
Query:
1) Now does B has to pay 30% slab rate on 30 crores again, though it has already suffered tax in UK?
2) If B is subject to tax again, what are the possible deductions and exemption he can claim.
3) If A brings money to India and deposits in his Indian bank account and transfers to B, can the case bring any change and possible deductions in B's 30 crores.
31 March 2018
A is a non resident whereas B is a resident.
1. Yes, B has to pay. It doesn't matter that the amount has already been subjected to Tax in the hands of A. THis is because A has gifted his friend B and such gift is fully taxable in the hands of the receiver.
1. Yes, B has to pay. It doesn't matter that the amount has already been subjected to Tax in the hands of A. THis is because A has gifted his friend B and such gift is fully taxable in the hands of the receiver.
31 March 2018
2. B will be assessed to tax for the gift received as mentioned above. The regular deductions and exemptions will be available for B
31 March 2018
3. Even if the amount is first brought to A's NRE account here and then transferred to his friend B, the transaction will be assessed to Income tax as a gift income as mentioned above.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- GST ON EXPORT COMMISSION
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
