consideration problem

[krishan sharma]

dear sir

I have a query  against special income if I have no normal income ( chargable slabe rate) and i wine a lottery and deduct the TDS from the lottery amount at 30% at the time of recieved  in this case i can consider the special income as a normal income  for refund income tax if lottery amount not exceed the exemted amount of slabe rate  plaese cleare my query

[Surender Gupta]

Section 115BB of Income Tax Act, 1961 provide the provisions for levy of tax on lottery income. It is 30% on such income. In case assessee does not have any other income, there is no scope of allowing basic exemption as per section 115BB.

To remove your doubt, you may also refer to section 112, where basic exemption has been allowed in respect of long term capital gains.

AI Summary

Taxation of lottery income: taxed at a fixed rate under a special provision and basic exemption not available when no other income exists. Lottery proceeds are taxed under a specific provision (Section 115BB) as special income at a fixed rate; where the assessee has no other income, the basic exemption cannot be applied against that lottery income and tax is computed under the special provision without allowance of normal exemption slabs.