Aditya Sinha (CA Final, B.Com(H)) (117 Points)
28 August 2011Pls help me with the following question...
A person won a lottery of1crore and after TDS he got70lakh net..
He made a fixed deposit of it and let after 8 yrs he got 1.40crore..( 70 lakh principal+ 70 lakh interest )
So is this whole 1.40cr taxable or only 70 lakh will be taxable which was received as interest..???? ( as principal 70 lakh was already net of tax..)
pls reply... thanks...!!!
in the year of winnings the whole 1 crore will be taxable so tax on 1 crore is around 28 lakhs and the tds is 30 lakhs so that person will get refund of 2 lakhs.
in case of fd only 70 lakhs interest will be taxable but not in the single year of maturity instead you have to take proportionate accrued interest for 8 years.
ROHIT CHATURVEDI
(CA Final Student )
(2298 Points)
Replied 28 August 2011
I think the gross Rs. 1 crore should be included in the GTI and after calculating the tax liability the TDS of Rs. 30 lacs is to be deducted .........as regarding interest, it will be charged to tax when it is received at maturity i.e. after 8 yrs.
himanshu
(student)
(95 Points)
Replied 28 August 2011
since the lottery amount is taxed in the year which it was accrued under the head casual income so will not be taxed after the end of 8th but the interest will be taxed as it accures overs the years under the head other sources.
CA Suhas Prabhu
(Chartered Accountant)
(159 Points)
Replied 29 August 2011
Dinesh Kumar Agarwal
(Article clerk)
(117 Points)
Replied 29 August 2011
As per section 115 BB income from lottery will be taxed @ 30%. and TSD rate is also 30% u/s 194B.
In second situation only interest part is taxable either on accural basis or receipt basis.
CAclubindia
