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Advance tax on lottery income

19 October 2019

if 2 persons aged 42 year and 59 year respectively, who has income from lottery 60 lac rs. and 8 lac respectively and TDS has been deducted u/s 194BB.

do they both required to pay advance tax
if yes then why ?
if no then why ?

please give appropriate section reference.

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14 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178099 Points)
Replied 19 October 2019

No question of advance tax if net tax liability over income (other than the lottery winning) doesn't exceed Rs. 10,000/- in previous year.

Otherwise YES....

1 Like

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Kapadia Pravin (17259 Points)
Replied 19 October 2019

Full tax gets deducted TDS @ 30% + cess at the time you receive lottery prize. No question of advance tax payment.
Enjoy lottery money 👍

Vishesh Bhagat (100 Points)
Replied 19 October 2019

As per sec 115BB tax on lottery income is 30%. he will claim the tds in return on balance he will pay 30%. it is mandatory but advance tax is required or not that is my question.

however as per ICAI,
income of 60 lac laible for advance tax and 8 lac not laible for advance tax.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 20 October 2019

Actually The deducted TDS is considered as advance tax...

But, The TDS amount is 8 laksh or 18 lakhs, pls confirm...

2 Like

Kapadia Pravin (17259 Points)
Replied 23 October 2019

TDS will be equal to flat rate of tax on lottery income and hence no need to pay advance tax payment.

42 year person - 60 lakh lottery - so TDS will be 30% +4% cess that is 18.72 lakhs under 194B

59 year person - 8 lakh lottery - so TDS will be 30%+4% cess that is 249600/- under 194B

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 23 October 2019

Ha ha ha ha ha ha Replying to query 1st blank after some others reply then 2nd reply with based with others reply as assuming query.... 😇😇😇😇😇😇😇

1 Like

Vishesh Bhagat (100 Points)
Replied 23 October 2019

I am not satisfied with any of answers
i got a logical answer I am sharing.
On 8 lac income
TDS deducted @ 30% = 240000
tax on 8 lac = 240000+9600(cess)=249600
net tax liability = 249600-240000=9600
it is less than 10000 so no advance tax required.

4 Like

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 23 October 2019

Bro.,

If You are not satisfied then no problem. Bcoz, You are not understand the lottery income and You want to get answer as per Your mind set..

But.,
Lottery income not under the brackets of the said calculations. If You get just 20k then TDS deductible as per the percentage.
The TDS amount also a advance tax...

Vishesh Bhagat (100 Points)
Replied 23 October 2019

Ok then according to you what should be the final answer of my query?

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 23 October 2019

Need not to pay tax by yourself as per above 2 question. TDs is deductible by the prize giver and it's enough to filing ITR...

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Vishesh Bhagat (100 Points)
Replied 23 October 2019

Think practically
if your TDS deducted @ 30% (240000)
you are filing ITR you showed 8 lac income
then what will be tax on 8 lac ?
it will be 249600.
but u can claim TDs only 240000.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 23 October 2019

At the time of TDS deduction Deductor also deduct that 4% as 249600... note, it's also not claiming amount ...

Himanshu Bhanushali (Student) (4 Points)
Replied 13 April 2021

Bcoz Advance tax liability come on Income tax more than Rs 10000.

Though TDS has been deducted but HEC is also payble

On 60 lakh tax is 30 percent plus HEC i.e toral tax 1872000 now TDS of 1800000 deducted after that tax liability is 72000..more than 10000 so Advance tax liability comes

On 8 lakh 30 percent tax plus HEC total tax 249600 now here tds 240000 deducted and bls tax is 9600 which is less than 10000 so advance tax here not required to be paid