738/CBDT. - Income Tax - 738/CBDT

INSTRUCTION NO. 738/CBDT Dated : August 14, 1974 Section(s) Referred: 40A(3) Statute: Income - Tax Act, 1961 The Board has examined in consultation with the Ministry of Law the question whether the provisions of section 40A(3) will apply to the totalisator dividends paid by race clubs to the holders of the winning tickets. A copy of the opinion of the Ministry of Law is (printed below). The Ministry of Law has advised that the provisions of section 40A(3) will not apply in respect of such payments made by race clubs. However, the provisions of section 40A(3) will apply in the case of the payments made by the bookmakers. 2. Necessary instructions may kindly be issued to all the ITO s working in the charge.