Section 194B & 194BB – Winning from Lottery, Puzzle, Game and Horse Races

Here you get the complete detail about TDS from winning from lottery, crossword puzzle, card game etc under section 194B and 194BB TDS from winnings from horse races.

Click here for 194B – TDS from Winning from lottery, crossword puzzle, card game

Click here for 194B Important Points

Click here for 194BB – TDS from Winning from Horse Races

Click here for 194BB Important Points

Quick Summary of Section 194B

Person Responsible to Deduct TaxAll Assessees
Exemption LimitRs. 10,000
TDS Rate30%
Time of Deduction of TDSAt the time of payment
Time for Deposit of TDSWithin 7 days from the end of the month in which deduction is made. For month of March, before 30th April.
Certificate of TDSForm 16A for each quarter is to be issued within 15 days from the due date for furnishing the statement of tax deducted at source under rule 31A i.e. on or before 15th August, 15th November, 15th February and 15th June
Quarterly Return of TDSQuarterly return in Form No. 26Q on or before 31st July, 31st October and 31st January for the first three quarters and on or before 31st May for the last quarter.
AO’s Certificate for Deduction at Lower Rate or Non DeductionNo
Is Self Declaration by Payee for Non Deduction AdmissibleNo

Important Points on TDS from Wiining from Lottery, Crossword Puzzle, Card Game

No TDS on bonus or commission payable to lottery agents: We understand it with easy example as follows.

Example: Mr. A wins a lottery price of Rs.2,00,000. A sum of Rs.10,000 is deducted for payment to the lottery agent. Now, tax will be deducted on Rs.1,90,000/- after allowing bonus/commission paid to agent.

No TDS of prizes on unsold/unclaimed lottery tickets in the possession of the agent: It is  treated as income from business and does not constitute of winning of lotteries. Hense, it is not subject to TDS.

Quick Summary – Winnings from horse races Section 194BB

Person Responsible to Deduct TaxAny person being maker or a person who is a licensee
Exemption LimitRs. 10,000 (w.e.f. 1.6-2016), Before 1-6-2016 Rs.5000
TDS Rates30%
Time of Deduction of TDSAt the time payment
Time for Deposit of TDSWithin 7 days from the end of the month in which deduction is made. For month of March, before 30th April.
Certificate of TDSForm 16A for each quarter is to be issued within 15 days from the due date for furnishing the statement of tax deducted at source under rule 31A i.e. on or before 15th August, 15th November, 15th February and 15th June
Quarterly Return of TDSIn form 26Q on or before 31st July, 31st October and 31st January for the first three quarters and on or before 31st May for the last quarter.
AO’s Certificate for Deduction at Lower Rate or Non Deduction (Section 197)
No
Is Self Declaration by Payee for Non Deduction Admissible (Section 197A)
No

Important Notes on TDS From Winning from Horse Races

  • Stake money does not constitute winning form horse race
  • Any horse race includes more than one horse race
Categories TDS

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