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tds on casual

abhishek (STUDENT) (162 Points)

19 August 2009

if tds is deducted on a casual income but total income falls around rs. 1.5 lacs ,then will it be refunded?

is it 100% compulsory to pay tax on casual income in such case?

pls friends,share ur views if u r very confident

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4 Replies

RITESH KOTHARI (B.COM, FCA, DISA(ICAI)) (778 Points)
Replied 20 August 2009

IF I AM NOT INTERPRETING WRONG YOU ARE TALKING ABOUT SECTION 194B & 194BB.

ON CASUAL INCOME SPECIFIED U/S 194B & BB, TDS IS TO DEDUCTED @ 30% AND U/S 115BB IT IS TAXABLE @ 30% ONLY NOT AS PER SLAB RATE OF TAXATION.

AND IN ANY OTHER CASE YOU ARE TALKING ABOUT, IT IS 100% COMPULSORY TO DEDUCT TAX AS PER RELEVANT SECTION UNLESS A CERTIFICATE FOR LOWER / NO DEDUCTION OF TAX U/S 197 HAS NOT BEEN OBTAINED.

REGARDS,

RITESH KOTHARI

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abhishek (STUDENT) (162 Points)
Replied 20 August 2009

dear ritesh ,sorry , i think i have not presented the problem clearly.

i m asking that if the tds is deducted on casual income, then will it be refunded if the person income is rs.1 lac only?

Ashish M (Chartered Accountant) (2731 Points)
Replied 21 August 2009

First of all, casual income(i.e. winnings from lotteries, horse races, etc.) are taxable at the rate of 30% [Sec.115BB] whether ur total income (inclusive or exclusive of this amount) exceeds 1.5lacs or not. Such income is taxable in the hands of the reciever.

if ur tax has been deducted on such income, since the tax is otherwise also payable, i think the refund can't be availed unless u have any investments under Chapter -VI-A in which case u can claim refund by filing the retrn...........