TaxTMI 
TaxTMI 
TDS u/s. 194B, 194BB and 194G of the IT Act, 1961--Deduction from winnings from lottery, crossword puzzles, horse races or from commission, etc., paid on sale of lottery tickets--Rates of tax applicable during the financial year 1991-92
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.... above subject wherein the rates at which the deduction of tax under section 194B and 194BB was to be made during the financial year 1990-91 from winnings from lotteries or crossword puzzles or horse races were communicated. 2. The Finance (No.2) Act, 1991, does not make any change in the rates of tax applicable during the financial year 1991- 92 in the matter of deduction of tax at source under sections 194B and 194BB of the Income-tax Act, 1961. However, a new section 194G has been inserted in the Income-tax Act, providing for deduction of tax at source from commission, etc., on sale of lottery tickets. The salient provisions regarding tax deduction from winnings from lotteries, horse races, etc., and the new section are explained in t....
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....he 1st day of October, 1991, to any person who is or has been stocking, distributing, purchasing or selling lottery tickets, any income by way of commission, remuneration or prize (by whatever name called) on such tickets, in an amount exceeding one thousand rupees shall, at the time of credit of such income to the account of the payee, or, at the time of payment of such income in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of ten per cent. The tax deducted will be further increased by a surcharge at the rate of 12% of the sum deducted. In case, however, the payee is a domestic company, the rate of surcharge will be 15%. 7. It is further clarified in this regard ....
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....ctually paid into the Government account. Reference in this regard is also invited to section 271C according to which a person who fails to deduct the whole or any part of tax as required under the provisions of Chapter XVII of the Act shall pay, by way of penalty, a sum equal to the amount of tax not deducted by him. Further, section 276B lays down that if a person fails to pay to the credit of the Central Government, the tax deducted at source by him, he shall be punishable with rigorous imprisonment for a term which shall be between three months and seven years and with fine. (b) According to the provisions of section 203, every person responsible for deducting tax at ....
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....ls to comply with the provisions of section 203A, he shall pay by way of penalty, under section 272BB, a sum which may extend to Rs.5,000. (d) According to the provisions of section 206, read with rules 36A and 37 of the Income-tax Rules, the prescribed persons in the case of every office of Government, the principal officer in the case of every company, the prescribed person in the case of every local authority or other public body or association, every private employer and every other person responsible for deducting tax under the provisions of Chapter XVII of the Income-tax Act (which includes sections 194B, 194BB and 194G) shall, within the prescribed time after the end of each financial year, prepare and deliver or cause to be deliv....
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....uction of tax at source under section 203 of the Income-tax Act, 1961 [For interest on securities; dividends; interest on time deposits referred to in clauses (vii) and (viia) of sub-section (3) of section 194A; insurance commission; payments in respect of depos­its under National Savings Scheme; payments on account of repur­chase of units by the Mutual Fund or Unit Trust of India; commis­sion, remuneration or prize on sale of lottery tickets; commission or brokerage; income from units referred to in section 196B]. Name and address of the person deducting tax TDS circle where Annual Return under section 206 is to be delivered Name and address of the person to whom payment is made or in whose account it is credited ....