NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Tax Provisions for Special Cases
Under the Income-tax Act, a resident individual's income from winnings from lottery or online games is taxed at which flat rate, without allowing any deduction for expenses?
Winnings from lotteries, games and similar sources are taxed at a flat rate of 30%, with no deduction for expenses or allowances. They are not taxed at normal slab rates, so the 30% rate applies irrespective of the person's total income.
- A30%Correct
- B20%
- C10%
- DAs per slab rates
Explanation
Winnings from lotteries, crossword puzzles, races, card games and online games are taxed at a flat 30% under the special rate, and no deduction for expenditure or allowance is permitted against such income. Slab rates do not apply.
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