Section 115BB

Section 115BB — the law in short

What the courts have decided on section 115BB, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• CIT v Dr M.A.M. Ramaswamy High CourtHelps departmentValidity unconfirmed
  My client's winnings from horse race betting are taxed at the special rate. Can his business loss be set off first, so that only the net is taxed under s.115BB?
  No, on this Madras High Court authority. Section 115BB is a standalone special provision under Chapter XII and the special rate applies to the entire income of winnings from horse racing, not to a figure arrived at after setting off losses from other sources. The Court expressly carved out income from the activity of owning and maintaining race horses, which is dealt with separately and carries its own set-off and carry forward regime in s.74A(3).

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.