Mode of Taxability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2011 Hello,
I want to know that Prize Amount won by an contestant of KBC is Taxable under which category & at what rate ?
Is there any exemption ?
Is there any Slab Rates for Computation ?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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01 January 2011 It will be lottery winning taxable u/s 115BB taxable at 30%.

18[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 19[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.]