TDS on lottery and game winnings requires deduction at payment, with special rules for kind prizes and online games. Income by way of winnings from a lottery, crossword puzzle, card game, game show, entertainment programme, gambling or betting is subject to TDS under section 194B when paid to any person responsible for making such payment. Tax is deducted at the time of actual payment, including each instalment, at 30% without surcharge or education cess, subject to the prescribed threshold. Where winnings are wholly in kind, or partly in cash and partly in kind with insufficient cash to meet the tax liability, the payer must ensure tax is paid before release. Bonus or commission paid to agents may be excluded, and the lower-rate facility does not apply to online game winnings.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
TDS on lottery and game winnings requires deduction at payment, with special rules for kind prizes and online games.
Income by way of winnings from a lottery, crossword puzzle, card game, game show, entertainment programme, gambling or betting is subject to TDS under section 194B when paid to any person responsible for making such payment. Tax is deducted at the time of actual payment, including each instalment, at 30% without surcharge or education cess, subject to the prescribed threshold. Where winnings are wholly in kind, or partly in cash and partly in kind with insufficient cash to meet the tax liability, the payer must ensure tax is paid before release. Bonus or commission paid to agents may be excluded, and the lower-rate facility does not apply to online game winnings.
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