Deduction of tax at source-Sections 194B and 194BB of the I.T. Act, 1961-Deduction from winnings from lottery or crossword puzzles or horse races-Rates of tax applicable during the financial year 1986-87

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.... lottery or crossword puzzles or horse races-Rates of tax applicable during the financial year 1986-87 Circular No.467 Dated 21/8/1986 From             B. Nagarajan,             Secretary, Central Board of Direct Taxes. To        &nbs....

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....nd Part I, Volume 23, section IV, Taxman. October, 1985, pages 73-76] on the above subject, wherein the rates at which deduction of tax u/s. 194B and 194BB to be made during the financial year 1985-86 from winnings from lottery or crossword puzzles or horse races were communicated. 2. According to the provisions of section 194B, every person responsible for paying to any person, whether residen....

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.... has raised limits specified under sections 194B and 194BB to Rs. 5,000 under the aforesaid sections with effect from 01-06-1986. The rates of deduction of tax at source under sections 194B and 194BB during the financial year 1986-87 as specified in Part II of the First Schedule to the Finance Act, 1986, are as under: Rates of income-tax (i) In the case of a person other than a company : ....

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....an income from the activity of owning and maintaining race horses), card games and other games of any sort or from gambling or betting of any nature whatsover shall be chargeable to income-tax at a flat rate of 40% on the gross winnings. 4. 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 or crossword puzz....