9911796707
TMI BlogDeduction of income-tax at source--Section 194B of the Income-tax Act, 1961--Deduction from winnings from lottery or crossword puzzle--Financial year 1980-81X X X X Extracts X X X X X X X X Extracts X X X X ..... dated the 26th May, 1980 ([1980] 124 ITR (St.) 3), wherein you were requested to issue necessary instructions for continuing to make deduction of income-tax at source from "winnings from lottery or crossword puzzle" at the same rates as were given in Part II of the First Schedule to the Finance Act, 1979. 2. You are aware that under section 194B of the Income-tax Act, 1961, every person responsible for paying to any person, whether resident or non-resident, any income by way of winnings from any lottery or crossword puzzle in an amount exceeding Rs.1,000 is required to deduct income-tax thereon at the rates specified in this behalf in the Finance Act of the relevant year. The rates of deduction of income-tax at source for the financial yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce where the income by way of winnings from lottery or crossword puzzle is Rs.1,000 or less. (ii) Where the prize is given partly in cash and partly in kind, income-tax will be deductible from each prize with reference to the aggregate amount of the cash prize and the value of the prize in kind. Where, however, the prize is given only in kind no income-tax will be required to be deducted. (iii) Income-tax will be deductible at the aforesaid rates during the financial year 1980-81, from prizes given after 18-6-1980, even if the relevant draw in respect of lottery or, as the case may be, the competition in respect of a crossword puzzle may have been held on or before that date. (iv) Where the lottery or crossword puzzle is paid in instalme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... open to the recipient of the prize to make an application in Form No. 13B to the Income-tax Officer concerned and obtain from him a certificate authorising the payer to deduct tax at such lower rates or deduct no tax as may be appropriate to his case. Such a certificate will be valid for the period specified therein unless it is cancelled by the Income-tax Officer earlier. (b) The person responsible for making any payment by way of winnings from lotteries or crossword puzzles should issue a certificate in Form No. 19B showing therein the amount of the prize, the amount of tax deducted at source and the date of payment in the Government account. (c) The person making deduction of tax in accordance with section 194B from income by way of wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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