Tax withholding on gambling and game winnings applies above the transaction threshold, with pre-release tax safeguards for in-kind prizes.

Section 393(3), Serial No. 1 requires every person paying specified lottery, game, gambling, or betting winnings, other than online-game winnings, to deduct tax at rates in force when a single transaction exceeds Rs.10,000. Where winnings are wholly in kind, or partly in cash and kind with inadequate cash to meet the tax liability, tax payment must be ensured before the winnings are released. The treatment corresponds to the comparable withholding framework for such winnings under Section 194B of the Income-tax Act, 1961.

---

---

---