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

Lottery Winnings Taxed at Flat 30% Rate, No Basic Exemption Allowed Under Section 115BB of Income Tax Act. An individual inquired about the possibility of treating lottery winnings as normal income for tax refund purposes, given they have no other income and tax was deducted at 30%. The response clarified that under Section 115BB of the Income Tax Act, 1961, lottery income is taxed at a flat rate of 30%, and no basic exemption is allowed if there is no other income. The reply also suggested referring to Section 112 for basic exemptions related to long-term capital gains, but it does not apply to lottery income.