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 1981-82X X X X Extracts X X X X X X X X Extracts X X X X ..... Department's Circular No. 276 (F.No. 275/17/80-IT(B), dated the 19th July, 1980 ([1981] 129 ITR (St.) 70) wherein you were requested to issue necessary instructions for making deduction of income-tax at source from "winnings from lottery or crossword puzzle") at the rates given in Part II of the First Schedule to the Finance (No. 2) Bill, 1980. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Where, however, the prize is given only in kind no income-tax will be required to be deducted. (iii) Where the lottery or crossword puzzle is paid in instalments, the deduction will be made at the time of actual payment of each instalment. (iv) Income-tax will be deductible from the amount of the prize money paid to the owner of the lucky ticket with reference to the amount paid to him. Income-tax is not deductible from the income by way of bonus or commission paid to lottery agents or sellers of lottery tickets on the sale made by them. (v) In view of section 288B of the Income-tax Act, 1961, the amount of tax to be deducted at source should be rounded off to the nearest rupee by ignoring amounts less than fifty paise and increasi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... educted 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 winnings from lotteries or crossword puzzles should send to the Income-tax Officer having jurisdiction to assess him the statement in Form No.26B quarterly on July 15th, October 15th, January 15th and April 15th in respect of deductions made by him during the immediately preceding quarter. 3. These instructions may be brought to the notice of all concerned under the control of the State Governments. 4. In cases of doubt the Income-tax Officer concerned may be consulted. 5. In case this circular is not received, a copy may be obtained from the Director of Inspection (R S P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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