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 1985-86

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....p;    Central Board of Direct Taxes. To             All State Governments (including Union Territories Administrations,             etc.) Sir, 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 1985-86. I am directed to invite a reference to the Board's Circular No. 390 [F. No. 275/15/84-IT(B)] dated the 8th August, 1984 [printed at [1984] 149 ITR (St.) 5], wherein you were requested to issue necessary instructions for making deduction of incom....

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.... 22.575 per cent (IT 21.5 per cent + SC 1.075 per cent); (b) where the company is not a domestic company 68.25 per cent (IT 65 per cent + SC 3.25 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 puzzles is Rs. 1,000 or less. (ii) Where a 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-ta....

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...., 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 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 Govern....