Applicability of tax

[Ashutosh Chhawchharia]

In case of Tax Computation of Women, if her total income is Rs.230000/- out of which Rs.100000/- is against Income from Horse Race, whether tax will be calculated after considering the basic exemption limit of Rs.180000/- or at flat rate of 30% on Income from Horse Race and balance as per basic exemption slab?

AI Summary

Discussion on Tax Rate for Horse Race Winnings: Section 115BB Imposes 30% Tax Without Basic Exemption Limit. A forum discussion addressed the tax computation for a woman with a total income of Rs. 230,000, including Rs. 100,000 from horse race winnings. The main query was whether the basic exemption limit of Rs. 180,000 applies or if a flat 30% tax rate is applicable to the horse race income. One participant advised reviewing relevant tax provisions and circulars, while another clarified that under Section 115BB, the 30% tax rate applies to horse race winnings without a basic exemption. The discussion highlighted the special tax treatment for such income to prevent tax evasion practices.