Deduction of tax at source--Section 194BB of the Income-tax Act, 1961--Deduction from income by way of winnings from horse races--Rates of tax for the financial year 1983-84 - Income Tax - 366/1983

Deduction of tax at source--Section 194BB of the Income-tax Act, 1961--Deduction from income by way of winnings from horse races--Rates of tax for the financial year 1983-84 Circular No. 366 Dated 20/7/1983 From R.C. Handa, Director, Central Board of Direct Taxes. To All Race Clubs. Subject : Deduction of tax at source--Section 194BB of the Income-tax Act, 1961--Deduction from income by way of winnings from horse races--Rates of tax for the financial year 1983-84. Sir, I am directed to invite a reference to Board's Circular No. 339 (F.No. 275/18/82-ITB), dated the 6th May, 1982, printed at [1982] 135 ITR (St.) 91, on the above subject wherein the rates at which deduction of tax under section 194BB to be made during the financial year 1982-83, from winnings from horse races were communicated. 2. The Finance Act, 1983, specifies the rate of tax for deduction at source from payments by way of winnings from horse races during the financial year 1983-84, in Part II of the First Schedule to the Act. These are as under: Rates of income-tax including surcharge I. In the case of a person other than a company— ( a ) where the person is resident in India 33.75 per cent (IT 30 per cent + SC 3.75 per cent); ( b ) where the person is not resident in India 33.75 per cent (IT 30 per cent + SC 3.75 per cent); or income-tax and surcharge on income-tax in respect of the income at the rates prescribed in Sub-Paragraph I of Paragraph A of Part III of the First Schedule to the Finance Act, 1983, if such income had been the total income, whichever is higher. II . In the case of a company— ( a ) where the company is a domestic company 22.575 per cent (IT 21.5 per cent + SC 1.075 per cent) ( b ) where the company is not a domestic company 73.5 per cent (IT 70 per cent + SC 3.5 per cent). 3. The tax deducted should be paid to the credit of the Central Government by remitting it into the office of the Reserve Bank of India or State Bank of India or any other authorised public sector bank within one week from the last day of the month in which the deduction is made. While making the payment of tax deducted at source to the credit of the Central Government it may please be ensured that the correct amount of income-tax and surcharge is recorded separately in the right type of challan form. 4. These instructions are not exhaustive and are issued only with a view to helping the persons responsible for making deductions of tax under this section. Whenever there is a doubt a reference should always be made to the Income-tax Act and the relevant Finance Act through which the changes in the tax structure are made. 5. In case any assistance is required, the ITO concerned or the local Public Relations Officers of the Income-tax Department may be approached for the same. 6. The copies of this Circular will be available with the Director of Inspection (Research, Statistics Public Relations), 6th Floor, Mayur Bhavan, Connaught Circus, New Delhi-110001. Yours faithfully, (Sd.) R.C. Handa, Director, Central Board of Direct Taxes.