Illustrations · Q4
Q.Mr. Verma won ₹2,00,000 in a State Government-run lottery. He had spent ₹500 during the year on purchasing lottery tickets, including the winning one.
(a) Compute his taxable income from this winning, and state the rate at which it is taxed.
(b) State whether Tax Deducted at Source applies when the lottery organiser pays him the prize money, and at what rate.
West Bengal WbchseTextbookSubjectiveImportance★★★★★est
80% · 8/10 Questions
You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.
Start your 14-day free trial to unlock the full solution →(a) Taxable amount and rate: Section 56(2)(ib) charges the FULL amount of winnings from a lottery, with NO deduction permitted for any expenditure incurred to earn it — the ₹500 Mr. Verma spent on lottery tickets (including the winning ticket itself) is not deductible. His taxable winning is therefore the entire ₹2,00,000, taxed at the special flat rate of 30% under Section 115BB (plus applicable surcharge and health-and-education cess), regardless of his other income or slab. …
Unlock everything free for 14 days
- Full step-by-step solutions
- Concept-first explanations
- Methods, shortcuts & mistakes
- PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.