Special Rates of Tax (Sections 115BB, 115BBE, 115BBF, 115BBG, 115BBJ)

# Special Rates of Tax

Certain incomes are taxed at SPECIAL FLAT rates regardless of slabs. Generally, no deduction or expenditure is allowed against such incomes, and no basic exemption can be claimed (with limited exceptions).

## (1) Section 115BB — Casual Income

Tax Rate: 30% (flat)

Applies on:

• Winnings from lotteries
• Winnings from crossword puzzles
• Winnings from card games
• Winnings from horse races
• Any other game of any sort or gambling/betting

## (2) Section 115BBE — Unexplained Money/Investment

Tax Rate: 60% (+ surcharge 25% + cess 4% = effective 78%)

Applies on income chargeable under:

• Section 68 — Cash credits
• Section 69 — Unexplained investments
• Section 69A — Unexplained money etc.
• Section 69B — Investments not fully disclosed
• Section 69C — Unexplained expenditure
• Section 69D — Amount borrowed/repaid on hundi

### Special Rules:

• NO basic exemption can be claimed against such income
• NO expenditure allowed as deduction
• NO set-off of loss allowed against such income

## (3) Section 115BBF — Royalty from Patents

Tax Rate: 10% (flat)

Applies on Royalty Income from Patent developed AND registered in India by a resident.

### Conditions:

• Patent must be developed in India → at least 75% of expenditure for development must be incurred in India
• No expense allowed as deduction against this royalty income

## (4) Section 115BBG — Carbon Credits

Tax Rate: 10% (flat)

Applies on Income from transfer of Carbon Credits.

### Conditions:

• No expense allowed as deduction

## (5) Section 115BBJ — Online Game Winnings

Tax Rate: 30% (flat)

Applies on Net Winnings from Online Games.

## Summary Table

## Common Rules for All

• No Chapter VI-A deductions (80C, 80D etc.) allowed against these incomes
• No basic exemption can shelter these incomes
• Losses cannot be set off against these (especially under 115BBE)