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  If a Person earns such income it is called Income from Other Sources and  taxable at flat rate of 30% + 3% education cess 

Suppose Lottery Income earned=200,000

 

Hence Income from Other Sources= 200,000

 Tax on Income from Other Sources=200000*30%=60000

Education Cess=3%*60000=1800

Total Tax=61800

  • Both Income in Cash/Kind covered
  • No expenditure is allowed to be deducted while calculating such income
  • No deduction can be claimed under chapter VI A regarding such income
  • Even i ncome tax slab rate (No tax upto 2,50,000) benefit is not available
  • The person paying this income (Lottery owner / Game show owner etc) has to deduct T.D.S at 30% on such income and pay net amount.

Example:-

Mr Ajay went to KBC and won prize of Rs 1Crore

KBC will pay him 70 lacs after deducting 30 lacs T.D.S

Suppose he does not have any other income he will file his income tax return

 

PARTICULARS

AMT

Income from Other Sources

10000000

Gross Total Income

10000000

Tax @ 30%

3000000

Education Cess

90000

[3% of tax]

 

Total tax                  

3090000

Less

 

TDS

3000000

Net tax payable

90000

  1. Income Tax
  2. Income from Other Sources
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CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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