CA GAURAV GUPTA (CA in JOB) (38 Points)
22 February 2010Can any one tell mew what will be the tax treatment of an individual who has no income other than Lottery income during the current year.and lottery income is amounting to Rs. 100000/- only.but Current year exemption limit for individual is Rs. 160000/-.
Now is he eligible to get exemption or shall be taxed at higher rate @ 30%??????????
pls also give explaination to me so that i can undrstand properly???????//
thanks for ur reply...........
Amir
(Learner)
(4016 Points)
Replied 22 February 2010
Dear Gaurav,
exemption limit is not available in case of Lottery Income......& is taxable @ Flat 30%
Amir
(Learner)
(4016 Points)
Replied 22 February 2010
Dear Gaurav,
As far as Explanation is concerned, Sec 115BB is clear which says that where an assessee has Lottery income in his total income then tax shall be computed as follows -
1) On Lottery @ 30%
2) On Other Income - as if this is the total income
That means exemption limit is NOT available in case of lottery, etc
C.Balaji
(Learner)
(1867 Points)
Replied 22 February 2010
Dear Mr.Amir brother....
Very confusing..............
For eg: Mr.A has only lottery income of Rs. 150000/- deducted TDS @ 30.9%...
which amounts to 46350...
since his income does not exceed Rs.160000 he files a return and claims Rs.46350 as refund.....
Is Mr.A right or wrong????
please reply........
Amir
(Learner)
(4016 Points)
Replied 22 February 2010
Dear Balaji,
Mr. A cannot claim refund since exemption limit is not available on lottery, etc.....
Sumiti Jain
(FP)
(1364 Points)
Replied 22 February 2010
yes Exemption on lottery income is not allowed
Chintan Shah
(-)
(534 Points)
Replied 22 February 2010
Yup... Agree with amir... basic exemption limit not applicable in case of lottery income... taxable at 30%...
C.Balaji
(Learner)
(1867 Points)
Replied 22 February 2010
Dear Amir....
then what does the term "BASIC EXEMPTION" mean???
Chintan Shah
(-)
(534 Points)
Replied 22 February 2010
Yup... Agree with amir... basic exemption limit not applicable in case of lottery income... taxable at 30%...
Amir
(Learner)
(4016 Points)
Replied 22 February 2010
Dear Balaji,
The term basic exemption has not been used anywhere....Its just a term used as per parlance.....
CA kuldeep kothari
(own practice)
(375 Points)
Replied 22 February 2010
Max Payne
(employed)
(2574 Points)
Replied 22 February 2010
Agree with Amir...
Refund also cannot be obtained... Unexhausted Basic exemption limit cant be claimed..
The computation is covered u/s 115BB, which lays down restriction in computing the tax on certain types of incomes
C.Balaji
(Learner)
(1867 Points)
Replied 22 February 2010
But Dear Amir bhai and friends...
One of my professors told me that it is not taxable since it is below the Basic exemption....Basic exemption applies to all including CG.....
Please clarify me........
Hareesh H Sharma
(Cleared IPCC..now article)
(894 Points)
Replied 22 February 2010
Yup..No expenses,no basic exemp n no set off for 115BB income
CAclubindia
