Deduction of tax at source under sections 194B and 194BB of the Income-tax Act, 1961--Deduction from winnings from lottery or crossword puzzles or horse races--Rates of tax applicable during the financial year 1990-91 - Income Tax - 569/1990

Deduction of tax at source under sections 194B and 194BB of the Income-tax Act, 1961--Deduction from winnings from lottery or crossword puzzles or horse races--Rates of tax applicable during the financial year 1990-91 Circular No. 569 Dated 27/7/1990 Reference is invited to this Department's Circular No.536 [F.No.275/88/89-IT(B)], dated 6-7-1989 [printed at [1989] 178 ITR (St.) 62] on the above subject wherein the rates at which deduction of tax under section 194B and 194BB to be made during the financial year 1989-90, from winnings from lotteries or crossword puzzles or horse races were communicated. 2. The Finance Act, 1990, does not propose any change in the rates of tax and surcharge applicable in the matter of deduction of tax at source under section 194B and 194BB of the Income-tax Act, 1961. 3. The aforesaid Circular explains the rate of tax and surcharge applicable in the matter of deduction of tax at source under sections 194B and 194BB in the case of winnings from lotteries, crossword puzzles and horse races. It also explains the duties devolving upon the persons responsible for paying any income of the nature of winnings from lotteries, crossword puzzles and horse races to deduct tax on the amount and also the liability to which such persons will be exposed in the case of failure to pay tax so deducted to the credit of the Central Government within the stipulated time, failure to furnish the annual return, etc. The instructions contained in the aforesaid Circular will be applicable during the current financial year also. 4. These instructions may please be brought to the notice of all concerned. In case of any assistance, the Assessing Officer concerned or the Local Public Relations Officer of the Income-tax Department may be approached for the same, who will, if necessary obtain the orders of higher authorities in the matter. 5. The copies of this Circular are available with the Directorate of Income-tax (RSP PR), 6th Floor, Mayur Bhavan, New Delhi. (Sd.) B.E. Alexander, Under Secretary to Government of India