Tax withholding on lottery and gambling winnings requires deduction above the transaction threshold and tax payment before in-kind release.

Section 393(3), Table, serial number 1, requires any person paying specified lottery, game, gambling or betting winnings to deduct tax at rates in force, excluding online-game winnings. Deduction applies only where winnings from a single transaction exceed Rs.10,000. For winnings wholly in kind, or partly in cash and kind where the cash is insufficient to meet tax liability, the payer must ensure that tax is paid before releasing the winnings.

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