Deduction of income-tax at source-Section 194B of the Income-tax Act, 1961--Deduction from lottery and crossword puzzle prizes--Financial year 1976-77.

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....ible for paying to any person, whether resident or non-resident, any income by way of winnings from any lottery or crossword puzzle in an amount exceeding Rs. 1,000 is required to deduct income-tax thereon at rates prescribed in this behalf in the Finance Act of the relevant year. The rates of the deduction of income-tax at source for the financial year 1976-77 have been prescribed in Part II of the First Schedule to the Finance, Act 1976, and are as follows:              Rates of income-tax              including surcharge  (i) In the case of a person other than a company-    (a) Where the pe....

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....d puzzle prizes may be made during the financial year 1976-77 according to the above rates. 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 the cash 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) Income-tax will be ded....

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....rescribed by the Income-tax Rules, 1962. In this connection, the following instructions may 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 No.13-B 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 certificate will be valid for the period specified therein unless it is cancelled by the Incom-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 de....