Ashok Kelkar (B.Com) (143 Points)
26 June 2015I have received Price of 400000/- from a contest. My questions are Basically to save 30% Tax As my Total Income is Less than 250000/- and I am senior Citizen
1 Whether I can gift some or all to my son, Daughter in Law or Grand Daughter?
2 Whether I can claimed Exemption form my Income for the year? and how?
3 Whether my Son, DiL can make investment in VIA from Gift Income?
4 Whether Gift Deed is Required tobe Registered?
5 Whether it is required to submit to to my I Tax Officer?
Z
( )
(2965 Points)
Replied 26 June 2015
You can not avoid this tax nor can you claim any exemption in respect of this income. You may use this money whatever way you want to. If you gift it to your relative then gift is not taxable
You must have received this money after deduction of tax @ 30% for which they must have provided you TDS certificate
In return this income will shown under the head of income from other sources
Such income is taxed flat at 30%[+cess]
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 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).
"relative" means—
(i) spouse of the individual;
(ii) brother or sister of the individual;
(iii) brother or sister of the spouse of the individual;
(iv) brother or sister of either of the parents of the individual;
(v) any lineal ascendant or descendant of the individual;
(vi) any lineal ascendant or descendant of the spouse of the individual;
(vii) spouse of the person referred to in clauses (ii) to (vi);
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