Deduction of income-tax at source--Section 194-B of the Income-tax Act, 1961--Deduction from winnings from lottery or crossword puzzle--Financial year 1979-80

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....ts. Sir, Subject :Deduction of income-tax at source--Section 194-B of the Income-tax Act, 1961--Deduction from winnings from lottery or crossword puzzle--Financial year 1979-80. I am directed to invite a reference to this Department's Circular No. 236 (F.No. 275/11/78-ITB) dated 15-4-1978,([1978] 113 ITR (St.) 1) 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 at source....

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....bsp;              24% (IT 22.5% + S.C. 1.5) (b) Where the company is not a domestic company  75.25 (IT 70% + S.C. 5.25%) 2. It is requested that deduction of tax from winnings from lotteries and crossword puzzles may be made during the financial year 1979-80, on payments made on or after 1st April, 1979, according to the above rates. 3. The substance of the main provisions in the law in so far as they relate to deduction of income-tax at source from winnings from lotteries 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) Wh....

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....overnment within one week from the date of deduction. The chalans for paying income-tax in the Government account may be obtained from the Income-tax Officer concerned. The Income-tax and surcharge should be shown separately in the chalans and/or while sending "Account head" details to the Accountants-General/Zonal Account Officers. (viii) The relevant forms in relation to the provisions for deduction of income-tax at source from winnings from lotteries and crossword puzzle prizes are prescribed by the Income-tax Rules, 1962. In this connection, the following 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 Inc....