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Horse race query

castudent (student) (113 Points)

30 August 2011

Have a doubt regarding Horse race provisions? Under what heads will these be taxed?

i) Winning from Horse race..

ii)Owing and Mantaining of horserace..

iii) Owning of Race clubs where races are organised..

Kindly reply

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11 Replies

Sunshine (Helping All) (10575 Points)
Replied 30 August 2011

1st and 2nd one will come under Income from other source...

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Sunshine (Helping All) (10575 Points)
Replied 30 August 2011

Clubs can be a B/P income coz many other activities are carried out over there...wait fr others to comment....

(Guest)

refer this link for detail answer.

https://220.227.161.86/11134p163-165aug04.pdf

thanks

kaushal

https://taxbykk.blogspot.com/

Sunshine (Helping All) (10575 Points)
Replied 30 August 2011

Sir,

In the questions given in Girish Ahuja's book, income from owning and maintainance of race horce is listed under IFOS...but as per this document it should be treated as a business income .... Can u please elaborate on the issue...

Thanx

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 31 August 2011

Originally posted by : Sanjay
	Have a doubt regarding Horse race provisions? Under what heads will these be taxed? i) Winning from Horse race.. - IFOS ( TDS applicable above 2500 @ 30% under 115BB) ii)Owing and Mantaining of horserace.. - IFOS upto 2500, thereafter business income iii) Owning of Race clubs where races are organised..- business income Kindly reply

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 31 August 2011

Originally posted by : Sunshine...
	Sir, In the questions given in Girish Ahuja's book, income from owning and maintainance of race horce is listed under IFOS...but as per this document it should be treated as a business income .... Can u please elaborate on the issue... Thanx

the PDF file is very much in order,

an individual if owe a horse and get some income( upto 2500 per annum) then its IFOS, but when own many and takes it as profession, then its surely business income.

2 Like

gopikrishna (Practicing Cost Accountant & Teacher) (127 Points)
Replied 31 August 2011

Hi Sanjay,

Income earned from winnings from Horse Races is a Casual Income taxed at a flat rate of 30% + S.C (if applicable) + E.Cess (Incl S.H.Ecess) @ 3% without availing any deductions from the income earned. If the income exceeds Rs 5000 TDS needs to be paid at the time of payment.

Income earned from owning and mantaining Horse Races falls under Income from other sources which will be added to Gross total income (excluding LTCG & STCG u/s 111A & casual income) and taxed at usual rate after availing dedns U/S 80C to 80U and expenditure incurred for earning such income and collection expenses.

Sunshine (Helping All) (10575 Points)
Replied 31 August 2011

THANK U SIR....

TRILOCHAN (SENIOR ACCOUNTANT) (698 Points)
Replied 31 August 2011

First & Second come under "INCOME FROM OTHER SOURCES " and third one is under PGBP.

In our company, i am doing practically the above transactions

Regards

TRILOCHAN

(Guest)

as per section 56(2) income from owning and maintaing horse race is always charged under the head other sources whether assessee is owning one horse or many horse. Section 56(2) is not worded as per the number of horses.

Sunshine : Quite impressed with your profile. Doing a extremly gud work. keep going. Now as far as pdf document is concerned i also noticed this mistake of charging the income under the head business which I do not agree to it.

and

Trilochan you are right.