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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Income from Other Sources

Under the Income-tax Act, 1961, winnings from lotteries, crossword puzzles and card games are taxed under Income from Other Sources at which treatment?

Winnings from lotteries, crossword puzzles, card games and similar are taxed at a flat rate of 30% plus surcharge and cess. No expense deduction is allowed, and the basic exemption limit cannot be used to reduce this income.

  1. ASlab rates after basic exemption limit
  2. BA flat special rate of 30% with no deductions for expenses allowedCorrect
  3. CExempt up to Rs 1,00,000 then slab rates
  4. DAdded to salary and taxed at average rate

Explanation

Winnings from lotteries, crosswords, races, card games and similar are taxed at a flat 30% (plus applicable surcharge and cess) under section 115BB. No deduction for expenses or allowance is permitted against such income, and basic exemption cannot be adjusted against it.

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