Deduction of income-tax at source--Section 194B of the Income-tax Act, 1961--Deduction from winnings from lottery or crossword puzzle--Financial year 1980-81

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....income-tax at source--Section 194B of the Income-tax Act, 1961--Deduction from winnings from lottery or crossword puzzle--Financial year 1980-81. Sir, I am directed to invite a reference to this Department's Circular No. 270 (F.No. 275/17/80-IT(B)), dated the 26th May, 1980 ([1980] 124 ITR (St.) 3), wherein you were requested to issue necessary instructions for continuing to make deduction of income-tax at source from "winnings from lottery or crossword puzzle" at the same rates as were given in Part II of the First Schedule to the Finance Act, 1979. 2. You are aware that 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....

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....e made by Parliament in the rates proposed in the Finance (No. 2) Bill, 1980, suitable instructions will be sent to you. 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 puzzle 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) ....

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....General/Zonal Account Officers. (viii) The relevant forms in relation to the provisions for deduction of income-tax at source form 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 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 a certificate will be valid for the period specified therein unless it is cancelled by the Income-tax Officer earlier. (b) The p....