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CS Executive · Tax Laws and Practice · Income from Other Sources

Under the Income-tax Act, 2025, for section 94 purposes, which description of a 'horse race' is correct?

A horse race, for section 94, means a race upon which wagering or betting may be lawfully made. The Income-tax Act, 2025 ties the definition to lawful betting, not to the venue, organiser, prize money or whether the owner bets.

  1. AAny horse race held anywhere, whether or not betting on it is lawful
  2. BA horse race upon which wagering or betting may be lawfully madeCorrect
  3. COnly a horse race organised by a recognised club in India with prize money above a notified limit
  4. DA horse race in which the owner has also placed a bet

Explanation

Section 94(6) defines horse race as a horse race upon which wagering or betting may be lawfully made. The definition depends on lawful betting, not on location, prize money or the owner's own bet. An option mentioning any race regardless of lawfulness is therefore wrong.

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