Deduction of income-tax at source-Section 194B of the Income-tax Act, 1961-Deduction from winnings from lottery or crossword puzzles-Rates of tax applicable during the Financial year 1984-85

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....nbsp;  Central Board of Direct Taxes. To             All State Governments (including Union Territories               Administrations, etc.) Subject:  Deduction of income-tax at source-Section 194B of the Income-tax Act, 1961-Deduction from winnings from lottery or crossword puzzles-Rates of tax applicable during the Financial year 1984-85. Sir, I am directed to invite a reference to the Board's Circular No. 365 [F. No. 275/22/83-IT(B)], dated the 20th July, 1983 [printed at [1983] 144 ITR (St.) 17], wherein you were requested to issue necessary instructions for making deduction of income-tax at sour....

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....y 73.5 per cent (IT 70 per cent + SC 3.5 per cent). 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) Where the lottery or crossword puzzle is paid in instalments, th....

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....t is open to the receipient 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 thereon unless it is cancelled by the Income-tax Officer earlier. (b) The person responsible for making any payment by way of winnings from lotteries or crossword puzzles should issue a certificate in Form No. 19B showing therein the amount of the prize, the amount of tax deducted at source and the date of payment in the Government account. (c) The person making deduction of tax in accordance with section 194B from income by....