Deduction of income-tax at source--Section 194B of the Income-tax Act, 1961--Deduction from winnings from lottery or crossword puzzle--Financial year 1981-82

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....e 19th July, 1980 ([1981] 129 ITR (St.) 70) wherein you were requested to issue necessary instructions for making deduction of income-tax at source from "winnings from lottery or crossword puzzle") at the rates given in Part II of the First Schedule to the Finance (No. 2) Bill, 1980. 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 from any lottery or crossword puzzle in an amount exceeding Rs. 1,000 is required to deduct income-tax thereon at the rates specified in this behalf in the Finance Act of the relevant year. The rates of deduction of income-tax at source for the financial year 1981-82, as propose....

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.... be made at the time of actual payment of each instalment. (iv) 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 sale made by them. (v) In view of section 288B of the Income-tax Act, 1961, the amount of tax to be deducted at source should be rounded off to the nearest rupee by ignoring amounts less than fifty paise and increasing amounts of fifty paise or more to one rupee. (vi) Tax deducted on behalf of Government is required to be paid to the credit of the Central Government on the same day. In other cases, t....