FAQ’s on Section 115BB – Tax rates for casual income

By Pioneer One / March 18, 2022 / Income Tax

Table of Contents

1. What is section 115BB of the income tax Act?

Section 115BB provides the tax rates applicable on casual income.

2. Does this section apply to non-resident?

Section 115BB applies to both resident and non-resident.

3. What are the incomes taxed under section 115BB?

Income by way of winnings from
1. Lottery
2. Betting
3. Gambling
4. Card game
5. crossword puzzle
6. Race including horse race (other than income from the activity of owning and maintaining race horses)
7. Other game of any sort

4. What is the rate of tax applicable on the income received under section 115BB?

Income under section 115BB is taxed at the rate of 30%.

5. Is basic exemption available on casual income?

Casual Income is taxed at a flat rate of 30% plus surcharge and cess, if applicable.
No expenditure is allowed as a deduction from casual income.
The benefit of basic exemption limit is not available in respect of casual income.

6. Is it necessary to deduct TDS on income that is taxable under section 115BB?

Yes, If the income taxable under section 115BB exceeds Rs. 10,000, the person responsible for making such payment is required to deduct TDS under section 194B or 194BB.
1. Section 194B- TDS on Winnings from lottery or crossword puzzle.
2. Sectionn194BB – TDS on Winnings from horse race.