TDS u/s 194B of Rs. 15,600/- against winning of Rs. 50,000/-.
No other source of income.
Total income Rs. 50,000
May that person get refund of Rs. 15,600/ in ITR.
pls
12 Replies
jacinthamary
(accountant)
(874 Points)
Replied 29 September 2020
TDS deducted against winning cannot be claimed as refund.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 29 September 2020
Yes... I agreed to Mr Jacinthamary.
TDS can't get refund if it's deducted based on winning games...
TDS can't get refund if it's deducted based on winning games...
Sagar Patel
(Tax and Business Consultant)
(11611 Points)
Replied 29 September 2020
Not get any refund.
Money received out of winning from lottery falls under the Head ‘Income from Other Sources’. This amount will be taxable at flat rate of 30%+ applicable cess
TDS is deducted when the winning amount exceeds Rs 10,000/-. This is the only exemption.
It doesn't matter if your overall income is below taxable limit. The benefit of basic exemption limit is not applicable in this case. You have to pay tax at 30% +applicable cess on the winning amount under all circumstances, therefore you can claim TDS in IT return but your liability is also equal to TDS amount So, the ultimately you don't get any amount as refund.
Money received out of winning from lottery falls under the Head ‘Income from Other Sources’. This amount will be taxable at flat rate of 30%+ applicable cess
TDS is deducted when the winning amount exceeds Rs 10,000/-. This is the only exemption.
It doesn't matter if your overall income is below taxable limit. The benefit of basic exemption limit is not applicable in this case. You have to pay tax at 30% +applicable cess on the winning amount under all circumstances, therefore you can claim TDS in IT return but your liability is also equal to TDS amount So, the ultimately you don't get any amount as refund.
vinayak landge
(B.Com)
(136 Points)
Replied 29 September 2020
Dear experts
whether in above case can he claimed rebate u/s 87A as his total income is less than 5 lacs?
whether in above case can he claimed rebate u/s 87A as his total income is less than 5 lacs?
jacinthamary
(accountant)
(874 Points)
Replied 29 September 2020
He cannot claim rebate because there is no tax liability. Tax rebate is available only if there is any tax. This amount cannot be claimed as refund.
Dharmendra kumar Rajpoot
(63 Points)
Replied 29 September 2020
Sir
is that person bound to file ITR compulsorily?
if total income is only Rs. 50,000/-.
is that person bound to file ITR compulsorily?
if total income is only Rs. 50,000/-.
vinayak landge
(B.Com)
(136 Points)
Replied 29 September 2020
but total income format is like:
IFOS = 50600 (35000+15600)
Total Income = 50600
Tax payable per section 194BB = 15790 (50600*30%+4%)
Less: Rebate u/s 87A = 12500
Net Tax Payable = 3290
Less: TDS Deducted = 15600
Refund = 12310
is the above treatment right?
Sagar Patel
(Tax and Business Consultant)
(11611 Points)
Replied 29 September 2020
1. Rebate u/s 87A of Rs. 12,500 available(As income below 5,00,000)
2. If you have only this income i.e Rs. 50,000/- winnings income, than its below Exemption limit, So, As per Income'tax you are not required to file ITR.
But As TDS deducted in your income and you want to claim Refund of same So, You have to file your ITR Compulsorily to claim Refund.
3. Refund (i.e ITR Calculation) is as below
Total Income ....50,000( i.e winning income only)
So, Tax @ 30%...............15,000
Less : Rebate u/s 87A....12,500
Tax after rebate................2,500
Add: Cess @ 4%..................100
Tax with cess...................2,600
Less: TDS Credit............15,600
Refund Amount.............13,000
I hope it's clarify all doubts...
2. If you have only this income i.e Rs. 50,000/- winnings income, than its below Exemption limit, So, As per Income'tax you are not required to file ITR.
But As TDS deducted in your income and you want to claim Refund of same So, You have to file your ITR Compulsorily to claim Refund.
3. Refund (i.e ITR Calculation) is as below
Total Income ....50,000( i.e winning income only)
So, Tax @ 30%...............15,000
Less : Rebate u/s 87A....12,500
Tax after rebate................2,500
Add: Cess @ 4%..................100
Tax with cess...................2,600
Less: TDS Credit............15,600
Refund Amount.............13,000
I hope it's clarify all doubts...
Krishna Chaudhary
(Accountant)
(4531 Points)
Replied 16 January 2021
No you can't. against specific speculation income there is no basic exemption limit
Mehta Sagar
(Founder of Silly Tax Solutions)
(29 Points)
Replied 13 June 2021
that is the correct answer you can also check some ITR filing software which shows the same ans
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