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-tax at source--Section 194B of the Income-tax Act, 1961--Deduction from winnings from lottery or crossword puzzle--Financial year 1981-82. Sir, I am directed to invite a reference to this Department's Circular No. 276 (F.No. 275/17/80-IT(B), dated the 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....

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....rize 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) Where the lottery or crossword puzzle is paid in instalments, the deduction will 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 vi....