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

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

Click here for 194B – TDS from Winning from the 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

Tax deduction from winning from lottery, crossword puzzle, card games or other games

Person Responsible to Deduct Tax Payer
Exemption Limit Rs. 10,000
TDS Rate 30% (If the recipient is a resident) (If the recipient is a non-resident surcharge and HEC will be applicable)
Time of Deduction of TDS At the time of payment
Time for Deposit of TDS Within 7 days from the end of the month in which deduction is made. For the month of March, before 30th April.
Certificate of TDS Form 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 TDS Quarterly 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-Deduction No
Is Self Declaration by Payee for Non-Deduction Admissible No

Important Points for Section 194B

No TDS on bonus or commission payable to lottery agents: We understand it with an 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, the tax will be deducted on Rs.1,90,000/- after allowing the bonus/commission paid to the 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 the winning of lotteries. Hence, it is not subject to TDS.

Quick Summary – Winnings from horse races Section 194BB

Tax deduction from winning from horse race

Person Responsible to Deduct Tax Any person being a maker or a person who is a licensee
Exemption Limit Rs. 10,000 (w.e.f. 1.6-2016), Before 1-6-2016 Rs.5000
TDS Rates 30% (If the recipient is a resident) (If the recipient is a non-resident surcharge and HEC will be applicable)
Time of Deduction of TDS At the time of payment
Time for Deposit of TDS Within 7 days from the end of the month in which deduction is made. For the month of March, before 30th April.
Certificate of TDS Form 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 TDS In 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 a horse race
  • Any horse race includes more than one horse race
Categories TDS

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