Latest News
-
Google CEO Sundar Pichai Terminates Over 20 Employees Amidst Internal Protests Over Israel; Reports -
Hidden Tata Group Stock To Pay Highest Rs 25/Sh Dividend Soon; Turns Rs 9,000 To Rs 9 Lakh In Long Term -
Gold Prices In US: Yellow Metal Rates Retreat As Middle East Tensions Ease; US Economic Data In Focus -
Sakuma Exports Secures Rs. 150 Cr Deal; Okays Rights Issue Amidst Positive Outlook -
Here Are Some Best All-Round Credit Cards Of 2024 Which Could Lead To Maximum Savings! -
Stock To Buy: Multibagger Tata Stock Hits 20% Upper Circuit, Gains 37.22% In 1-Week; TP Rs 1100 -
Closing Bell: Sensex, Nifty Extend Gains 3rd Day; India VIX Records Biggest Single Day Fall Since May 2019 -
Mutual Funds: 10 PSU Stocks Have Reduced Holdings -
Air India Joins Into Codeshare Pact With Japan's All Nippon Airways -
Razorpay Declares 'UPI Switch' In Partnership With Airtel Payments Bank
What is the TDS that is applicable on winning lottery and horse racing?
TDS is nothing, but the immediate amount of tax that you have to pay. We shall give example to understand the same at a latter stage and how it is computed.
TDS on winning lottery
If you have won a lottery, get prepared for a huge TDS of 30 per cent. This is if the amount of lottery ticket won is more then Rs 10,000. Apart from this there is an education cess that is payable at the rate of 3 per cent on the tax amount.
Let's give you an example. Let's say you have won a lottery and the price money on the same is Rs 1 lakh. The person who is responsible to deduct the TDS amount will give you a sum that is less then Rs 70,000 being the amount of TDS and education cess. So, what you would win would be slightly less than 70,000 on a lottery ticket prize money of Rs 1 lakh.
Now, when you file your income tax return you have to show the amount won "as income from other sources". You can then furnish the TDS amount paid. Thus you would arrive at your total income and would be taxed according to your tax slab.
TDS on horse racing
Like TDS on winning lottery, here as well tax is deducted at source at 30 per cent. What this means is that if you have won Rs 10,000, a sum of Rs 3000 would be the tax deducted and you would receive only 70 per cent or marginally lower to account for education cess. The computation would more or less work as the same like that done for the example on lottery tickets won.
Conclusion
There is very little that can be done when it comes to TDS, whether it is horse racing or lottery tickets. Unlike bank deposits where you can submit form 15G or form 15H, and avoid paying TDS, there is no such option. The person responsible for deduction would deduct the TDS and hand over the net amount. You must make sure that you declare this amount when you file your tax returns. Under no circumstances should any form of income be hidden from the tax authorities.
GoodReturns.in
