Insertion of new section 115BB

Section 26 of the Finance Act, 1986 deals with insertion of new section 115BB. Insertion of new section 115BB. 26. In Chapter XII of the Income-tax Act, after section l15B, the following section shall be inserted with effect from the 1st day of April, 1987, namely: — 115BB.

Insertion of new section 115BB.

26. In Chapter XII of the Income-tax Act, after section l15B, the following section shall be inserted with effect from the 1st day of April, 1987, namely: —

115BB. Tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting of any form or nature whosoever.—Where the total income of an assessee includes any income by way of winnings from any lottery or crossword puzzle or race including horse race (not being income from the activity of owning and maintaining race horses) or card game and other game of any sort or from gambling or betting of any form or nature whatsoever, the income-tax payable shall be the aggregate of—

(i) the amount of income-tax calculated on income by way of winnings from such lottery or crossword puzzle or race including horse race or card game and other game of any sort or from gambling or betting of any form or nature whatsoever, at the rate of forty per cent.; and

(ii) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause (i).

Explanation.—For the purposes of this section, ''horse race" shall have the same meaning as in section 74A.

[Finance Act, 1986]

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Section 26, The Finance Act, 1986 (Act 23 of 1986).