Tax deduction at source on gambling winnings: obligation to deduct unchanged rates and payer liability persists. The Finance Act, 1990 did not change rates or surcharge for tax deduction at source on winnings from lotteries, crossword puzzles and horse races for 1990-91. Payors of such winnings must continue to deduct tax at the rates set out in the earlier Circular No.536, deposit amounts to the Central Government within stipulated timeframes, and furnish the annual return; failure to deposit deducted tax or to file returns attracts liability and other consequences.