{"id":1607,"date":"2013-10-05T09:39:59","date_gmt":"2013-10-05T04:09:59","guid":{"rendered":"http:\/\/www.itatonline.org\/articles_new\/?p=1607"},"modified":"2013-10-05T09:39:59","modified_gmt":"2013-10-05T04:09:59","slug":"is-stake-money-received-by-jockeys-liable-for-tds","status":"publish","type":"post","link":"https:\/\/itatonline.org\/articles_new\/is-stake-money-received-by-jockeys-liable-for-tds\/","title":{"rendered":"Is Stake Money Received By Jockeys Liable For TDS?"},"content":{"rendered":"
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\"Ashish-Karundia\"<\/div>\n

Is Stake Money Received By Jockeys Liable For TDS?<\/p>\n

CA Ashish Karundia, Senior Associate, Direct Tax, Lakshmikumaran & Sridharan<\/p>\n

In a short but succinct article, the author has dealt with the controversial topic whether stake money received by jockeys is liable for TDS or not. After thorough research and a systematic study of sections 194BB and 194J of the Act, the author has drawn the conclusion that there is no present obligation to deduct tax on these payments.\n<\/p><\/div>\n

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Casual and non recurring receipts<\/strong> were exempted from payment of Indian Income Tax since 1918 [end note 1] except<\/em> where such receipts arose from business or exercise of profession, vocation or occupation. The Indian Courts have held that winnings from horse races amount to casual and non recurring income, however, whether such income qualifies as business income of the taxpayer or not is a question of fact [end note 2]. Resultantly, winnings from horse races were brought to tax where horse racing constituted a business of the taxpayer else<\/u><\/em> exempted where the same constituted hobby. In order to bring uniformity in taxing such winnings, the legislature amended [end note 3] the Income Tax Act, 1961 (‘ITA<\/strong>’) and deemed, winnings from horse races, as income [end note 4] on the basis of the suggestions [end note 5] of various committees [end note 6].\n<\/p>\n<\/div>\n

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