Tax deduction at source on lottery winnings requires withholding at prescribed rates and procedural compliance for deposit and reporting. Section 194B requires persons responsible for paying lottery or crossword puzzle winnings above the statutory threshold to deduct tax at specified rates; the circular specifies resident and non resident rates, special company rates, aggregation rules for cash and in kind prizes, instalment treatment, rounding to the nearest rupee, timing and procedure for deposit of tax and surcharge, and the use of prescribed forms including Form 13B for lower withholding certificates, Form 19B for payee certificates and quarterly submission of Form 26B.