@ Hi guys,

THE STORY:
As you all know I have received one jackpot each during A.Y. 2015-16 and A.Y. 2016-17 and the BTC deducted 30% TDS on entire dividend. During A.Y. the exemption was Rs 5,000 and during A.Y. 2016-17 Rs.10,000 was exempted. At the time of writing this post (say A.Y. 2017-18), Rs.10000 is exempted from TDS from horse race winning and TDS has to be deducted @ 30% on any amount beyond Rs.10000. However, while encashing the ticket BTC I questioned the Accounts Department why they deduct 30% on exempted amount, they replied the punters have to file the I.T. returns annually to claim the refund. I faced lot of harassment inordinate delay from the BTC Accounts Department, whether it is releasing payment cheque or TDS Certificate.

After that I faced lot of trouble again to file the I.T. Returns. Any tax payer doing it their own on IT website will find it difficult to complete the E-filing. Even in Bangalore there are only limited number of CAs who are handling Racing Related returns, rest of the CAs say (I have contacted at least 10) there is no way we can claim the refund.

I have knocked the door of few top notch men at the helm of affairs in BTC for help. It was not a matter of prestige or the money lost. My aim was to solve this problem once and for all, and help those hapless punters whose legitimate money is illegally deducted and deposited in ITD in the name of TDS.

Lot of help received from a senior jockey's elder brother who is happened to be an owner and a member of the Club. They introduced a CA to me and filed the returns on 26.06.2017. Although there was a mistake in filing the returns, due to which I got some excess money as refund. I got the refund order on 07.07.2017. Refund amount credited to my bank account today 11th July 2017. The excess money has to be returned with interest to ITD upon receipt of Notification in that effect later. Anyway the matter is solved now.

NOW EXPLAINING HOW TO FILE THE IT RETURNS TO CLAIM THE REFUND FROM ITD/CPC (Centralised Processing Center).

COMPUTATION OF INCOME AND TAX THEREON:
(Suppose you have only Horse Racing Income)
For example: Total Dividend declared is Rs 50,000
(BTC deducted TDS @ 30% = 15,000 and paid balance Rs 35,000 to you. And your annual Income is below Rs 2,50,000.

(A) INCOME FROM OTHER SOURCES : 50,000 - 10,000 = 40,000
(B) Income Chargeable to Tax at Special Rate: 40,000
(C) Total Income: 40,000
(D) Income which is included in 'Total Income" and chargeable to tax at Special Rate: 40,000
(E) Tax on Special Income: @ 30% = 12,000
(F) Net Tax Payable: 12,000
(G) Rebate under section 87A : Rs 5,000
(H) Tax Payable after Rebate : 7,000
(I) Education Cess 0.03% on 7,000: Add: 210 = 7210
(J) Gross Tax Liability: 7,210
(K) TDS: 15,000
(L) REFUND AMOUNT: 15,000 - 7,210 = 7,790
(M) TOTAL INCOME TAX REFUND: 7,790
Note: Out of 7790, 3000 is the excess TDS deducted on exempted amount.
Rs. 4,790 is the Net rebate available.

In case anyone wants to file IT returns, please take my Email ID from Indiarace Admin and contact I will guide you to contact details of the CA.

Good Luck to All !