12 October 2009
Please tell me whether basic exemption limit of Rs.5000 is to be deducted while calculating the TDS u/s 194B (Winnings from Lotteries. I mean tax on Rs.30000 will be after deduction of Rs. 5000 or without deduction.
M very confused as some books deduct rs.5000 while some dont. Till I know it should be deducted on Rs.30000/-
12 October 2009
no it will not be deducted while deducting TDS. E.G. mr x won lotteries of 30,000 the tds of 33.66% i.e.10,098 will be deducted and he will get 19,902 rs. However, claiming of refund is possible after comupting total income.
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