Lottery ticket trade payments require tax deduction on qualifying commission, remuneration and prizes at credit or payment, whichever occurs earlier.

Commission, remuneration or prizes paid in connection with stocking, distributing, purchasing or selling lottery tickets attract tax deduction at source. Any person responsible for payment must deduct tax at 2% where the payment exceeds Rs.20,000. Deduction is required at the earlier of credit to the recipient or payment by cash, cheque, draft or any other mode. The requirement applies to lottery-ticket trade consideration and not to lottery winnings.

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