Section 194G - Commission, etc., on the sale of lottery tickets - Income-tax Act, 1961

1 [Commission, etc., on the sale of lottery tickets. 194G. 2 [(1)] Any person who is responsible for paying, on or after the 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 5 [ fifteen 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 the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of 7 [ two per cent. ] : (2) 3 [***] (3) 4 [***] Explanation. -For the purposes of this section, where any income is credited to any account, whether called Suspense Account or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.] -------------------- Notes :- 1. Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991. 2. Renumbered by the Finance Act, 1992, w.e.f. 1-6-1992. 3. Omitted by the Finance Act, 2003, w.e.f. 1-6-2003. Prior to their omission, sub-sections (2) and (3), as inserted by the Finance Act, 1992, w.e.f. 1-6-1992, read as under : (2) Where the Assessing Officer is satisfied that the total income of any person who is or has been stocking, distributing, purchasing or selling lottery tickets justifies the deduction of income-tax at any lower rate or no deduction of income-tax, as the case may be, the Assessing Officer shall, on an application made by such person in this behalf, give to him such certificate as may be appropriate. (3) Where any such certificate is given, the person responsible for paying the income referred to in sub-section (1) shall, until such certificate is cancelled by the Assessing Officer, deduct income-tax at the rates specified in such certificate or deduct no tax, as the case may be. 4. Omitted by the Finance Act, 2003, w.e.f. 1-6-2003. Prior to their omission, sub-sections (2) and (3), as inserted by the Finance Act, 1992, w.e.f. 1-6-1992, read as under : (2) Where the Assessing Officer is satisfied that the total income of any person who is or has been stocking, distributing, purchasing or selling lottery tickets justifies the deduction of income-tax at any lower rate or no deduction of income-tax, as the case may be, the Assessing Officer shall, on an application made by such person in this behalf, give to him such certificate as may be appropriate. (3) Where any such certificate is given, the person responsible for paying the income referred to in sub-section (1) shall, until such certificate is cancelled by the Assessing Officer, deduct income-tax at the rates specified in such certificate or deduct no tax, as the case may be. 5. Substituted vide THE FINANCE ACT, 2016 w.e.f. 1st day of June, 2016 before it was read as, one thousand rupees 6. Substituted vide THE FINANCE ACT, 2016 w.e.f. 1st day of June, 2016 before it was read as, ten per cent. 7. Substituted vide Section 56 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-10-2024 before it was read as, 6 [ five per cent. ]