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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....aces-Rates of tax applicable during the financial year 1986-87 Circular No. 478 Dated 14/1/1987 From B. Nagarajan, Director, Central Board of Direct Taxes. To All State Governments, (including Union Territories Administration), All Race Clubs. Sir, Subject: Deduction of tax at source-Sections 194B and 194BB of the I.T. Act, 1961-Deduction from winnings from lottery or crossword puzzle....

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....not exceed Rs. 5,000 in a year. (2) Where such winnings exceed Rs. 5,000, tax is to be deducted at source at the rate of 40% on the gross winnings, after treating Rs. 5,000 as exempt under the provision of section 10(3) of the Income-tax Act, 1961, if such payment is made on or after 1-6-1986. The term "gross winnings" appearing herein means the payment received by the prize winner after deducti....