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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....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 sources for the financial year 1979-80, have been specified in Part II of the First Schedule to the Finance Act, 1979, and are as follows:- Rates of income-tax including surcharge (i) In the case of a person other than a company- (a) Where the person is resident ....

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....ear 1979-80 from prize given after 31st March, 1979, 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 been held on or before that date. (iv) Where the lottery or crossword puzzle is paid in instalments, the deduction will be made at the time of actual payment of each instalment. (v) Income-tax will be deductible from the amount of the prize money paid to the owner of the lucky ticket with reference to the amount paid to him. Income-tax is not deductible from the income by way of bonus or commission paid to lottery agents or sellers of lottery tickets on the sales made by them. (vi) In view of section 288B of the Income-tax Act, 1961, the amount of tax to be ....