Section 194G - TDS on Commission etc. on sale of lottery tickets - Income Tax - Ready Reckoner - Income Tax

Section 194G : TDS ON COMMISSION, ETC. ON THE SALE OF LOTTERY TICKETS Applicability On or after the 1st day of October, 1991, Where any income by way of commission, remuneration or prize on lottery tickets is paid to a person who has been stocking, distributing, purchasing or selling lottery tickets, then the person responsible for paying such income shall deduct income tax thereon. Where the payer is a company, the company itself including principal officer shall be the person responsible for paying such income. Time of Deduction At the time of credit to the account of the payee or payment in cash or by cheque or any other mode, whichever is earlier. Rate of TDS 2% [ Substituted vide Finance (No. 2) Act, 2024 w.e.f. 01.10.2024 ] 5%. [ Upto 30.09.2024 ] Threshold Limit - Exceeding Rs. 15,000 Note: In case where the lottery tickets are sold to an agent on a discount and there was no payment of commission to agent at the time of purchase of ticket, section 194G is not applicable. [ M.S. Hameed v Director of State Lotteries 2000 (11) TMI 63 - Kerala HC ]