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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Taxation of Other Products

Under the Income-tax Act, winnings from lottery, crossword puzzles or online games are taxed at which flat rate, without allowing any deduction for expenditure?

Income from winnings such as lotteries, crossword puzzles and online games is taxed at a flat rate of 30% under the Income-tax Act, with no deduction for expenses, plus applicable surcharge and cess.

  1. A10%
  2. B20%
  3. C30%Correct
  4. DApplicable slab rate

Explanation

Winnings from lotteries, puzzles, races and similar games are taxed at a flat 30% with no deduction of expenses or allowance, and no basic exemption benefit. Slab-rate treatment is therefore incorrect.

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