Tax deduction at source on horse race winnings requires prescribed rates and timely deposit using designated challans. The circular prescribes withholding arrangements for winnings from horse races for 1981-82: apply the specified flat withholding rates or, if higher, the tax and surcharge computed as if such winnings were the total income. Tax deducted must be remitted to the Central Government within one week of the month end into authorized banks using the appropriate challan (No. 2 red band for companies; No. 8 blue band for non companies). Failure without reasonable cause to deduct or to pay deducted tax attracts penal consequences, and taxpayers should consult the Income tax Act, the Finance Act, or local tax officers for guidance.