Deduction of income-tax at source-Section 194B of the Income-tax Act, 1961--Deduction from winnings from lottery or crossword puzzle--Financial year 1978-79

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....rnments. Sir, Subject:  Deduction of income-tax at source-Section 194B of the  Income-tax Act, 1961--Deduction from winnings from lottery or crossword puzzle--Financial year 1978-79. I am directed to invite a reference to this department's Circular No.226 (F.No.275/19/77-ITB) dated 14-7-1977 ([1977] 109 ITR (St.) 87) on the above subject. Under section 194B of the Income-tax Act, 1961, every person responsible for paying to any person, whether resident or non-resident, any income by way of winnings from any lottery or crossword puzzle in an amount exceeding Rs.1,000 is required to deduct income-tax thereon at rates specified in this behalf in the Finance Act of the relevant year. The rates of the deduction of income-tax a....

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....es and crossword puzzles, is given hereunder:- (i) No tax will be deducted at source where the income by way of winnings from lottery or crossword puzzles is Rs.1,000 or less. (ii) Where the prize is given partly in cash and partly in kind, income-tax will be deductible from each prize with reference to the aggregate amount of the cash prize and the value of the prize in kind. Where, however, the prize is given only in kind no income-tax will be required to be deducted. (iii) Income-tax will be deductible at the aforesaid rates during the financial year 1978-79 from prizes given after 31st March, 1978, even if the relevant draw in respect of lottery or, as the case may be, the competition in respect of a crossword puzzle may have b....

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....ollowing instructions may please be noted:-  (a) In the case of any person, other than a company, it is open to the recipient of the prize to make an application in Form No.13B to the Income-tax Officer concerned and obtain from him a certificate authorising the payer to deduct tax at such lower rates or deduct no tax as may be appropriate to his case. Such certificate will be valid for the period specified therein unless it is cancelled by the Income-tax Officer earlier.  (b) The person responsible for making any payment by way of winnings from lotteries or crossword puzzles should issue a certificate in Form No.19B showing therein the amount of the prize, the amount of tax deducted at source and the date of payment in the ....