Casual Income

Casual income refers to income that is irregular, unexpected, or non-recurring in nature, often arising from chance or windfall gains. Such income does not come from a regular source or business activity and is taxed at special rates under the Income Tax Act.

If you’re unsure how to report lottery winnings, gifts, or other irregular earnings, professional tax filing services online can simplify the process and ensure compliance with current tax laws while maximizing accuracy and minimizing risk.

Example: Lottery winnings, crossword puzzle prizes, or game show rewards are treated as casual income and are taxed at a flat rate of 30% under Section 115BB.

Casual income must be properly disclosed under the correct head while filing returns. Choosing the best ITR filing services ensures that such income is reported accurately, preventing errors, scrutiny, or unnecessary tax complications.

Since casual income is taxed at a special rate without deductions, consulting the best online tax consultant India can help you understand tax liabilities clearly and avoid costly mistakes during return filing.