No, As per Income Tax act, winning from Horse Jockey is taxable @ 30%. No expenditure can be claimed. No deduction under Chapter VIA can be allowed. It is fully taxable @30%.
Hi Team, Can income earned by horse jockey treated as professional Income and claim expenses and deductions under sec 80C and taxed at slab rates. The prize money is fully taxable at flat rate of 30%, without any deductions.
No, As per Income Tax act, winning from Horse Jockey is taxable @ 30%. No expenditure can be claimed. No deduction under Chapter VIA can be allowed. It is fully taxable @30%.
I am professional jockey, i ride horse for others, for each ride i get Rs. 2000/-. If i secure first three prize, i get 7.5% as prize money, on which TDS is deducted at 30% flat. I hope on Rs.2000 for each ride, is my professional Income and get taxed under business and profession and prize money fully taxed at 30%. Is my understanding is right.
Yaa, regarding taxable rate your understanding is right. But, there is special field for this typr of income under income from other sources. you have to give figures there
Head of Income: Prize money of 7.50% is shown under other sources. Where no deductions allowed and taxed at 30% flat Rs.2000 for each ride is taxed under business or profession and i can claim expenses and deductions under 80C and taxed at slab rates. Or it is also taxed under other sources and taxed at flat rate of 30%?
Dear Sir,
Your income shall be professional fees and it will be taxed on slab basis only and not on flat 30%. So suppose your income is Rs. 10,00,000/- per annum than tax payable shall be Rs. 1,25,000/- (Assuming no deduction claimed u/s 80C) only.
Dear Sir,
In my opinion, It will be your professional income and you can pay tax slabwise. You can claim profession realted expenses against the income
Please feel free to revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Hello Sir,
Yes you are correct, the prize money will be taxed under other sources and ride money i.e Rs.2,000/- ride will be taxed under the head BP. You can also very well claim 80C deduction against it.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Hi,
Your prize money is taxable under the head "Other Source" at the flat rate of 30%, without any deduction of expenses.
The money you receive for riding, will be taxable as Business Profits. You can claim deduction of expenses against the income. The net profit will be taxed as business profits. Alternatively, you may take the benefit of presumptive taxation and declare 50% of the receipts as your profits. Further, you can claim 80C deduction from such business profits and pay tax as per the slab rates.
Trust this clarifies.
Regards
Keerthiga Padmanabhan
M.Com., CA, LLB