24 February 2008
Q: can loss from businees(non speculative) or H.P can be set off from lottery income?? I have a book of Mr. ajay jain, in which a question contains that: " LOSSES CAN BE SET OFF AGAINST WINNINGS OF LOTTERIES, HORSE RACES ETC." AND FURTHER A PRACTICAL QUESTION THAT IS Q112 Mr X won lottery of Rs. 10000, but incurred a loss of rs. 7000 in non speculative business. on how much income is liable to pay tax? Ans: 3000 as per answer given in his suggested answers
24 February 2008
I FEELS THAT: section 115 of lottery income states that"NO LOSSES CAN BE SET OFF FROM WINNING OF LOTTERY INCOME" FURTHER IN CHAPTER CARRY FORWARD AND SET OFF IT STATES THAT; 1. INCOME FROM HOUSE PROPERTY (INTER HEAD) CAN BE SET OFF AGAINST ANY INCOME
2. LOSS FROM NON SPECULATIVE BUSSINESS CAN BE SET OFF AGAINST ANY INCOME OTHER THAN SALARY I THINKS AUTHORS HAVE INTERPRETED IT DIFFERENTLY AS IN SECTION 115 ITS CARRIED THE WORD "NO LOSS" WHICH IS INTERPRETED
25 February 2008
Mr rakesh winning from lotteries cannot be set off agst loss from non speculative business. The tax payable would be Rs.3000 plus cess. (30% on 10000/-)
25 February 2008
ONE OF THE EXCEPTION OF SECTION 70 STATES THAT LOSS FROM ANY INCOME CANNOT BE SET OFF AGAINST INCOME FROM WINNING FROM LOTTERIES ,THEREFOR TAX IS TO BE PAYABLE ON INCOME FROM WINNING FROM LOTTERIES
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