TaxTMI 
TaxTMI 
TaxTMI 
Assessment of persons in lottery business.
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....antial amounts as service charges, bonus, royalty and selling agents commission. It has also been observed that the scheme of lottery generally provides for deduction towards bonus, selling agents commission etc. in respect of prize winning amounts and the amounts so deducted are paid to the concerned stockists/sub-agents. Some of these persons have not been disclosing these amounts in their retur....
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....tate Governments or acts as sole selling agents on commission basis. The promoters of private lotteries have also been found to engage organising agents to conduct the lotteries on guaranteed profit basis or appoint stockists and agents on payment of commission for arranging the sales of lottery tickets. 4. The present provisions of Sec. 194B and Section 206 of the Income-tax Act, read with Rules....
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....ment of service charges, bonus, royalty, selling agents commission and service charges on prize winning tickets made to organisers, stockists and sub-agents by the State Governments or by the private promoters of lottery authorised to conduct lottery by the State Governments. The information collected should be verified and disseminated to the concerned assessing officers to ensure that the income....
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....ould collect information relating to recipients of prize money from the annual statements in form No. 26B from the concerned officers, verify the same and then disseminate it to concerned assessing officers of the winners of lottery so as to enable them to take further action under the Wealth-tax Act. In view of the provisions of Sec. 115BB, the question of loss of revenue under the Income-tax Act....