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TMI BlogDeduction of income-tax at source-Section 194B of the Income-tax Act, 1961-Deduction from winnings from lottery or crossword puzzles-Rates of tax applicable during the financial year 1985-86X X X X Extracts X X X X X X X X Extracts X X X X ..... x at source-Section 194B of the Income-tax Act, 1961-Deduction from winnings from lottery or crossword puzzles-Rates of tax applicable during the financial year 1985-86. I am directed to invite a reference to the Board's Circular No. 390 [F. No. 275/15/84-IT(B)] dated the 8th August, 1984 [printed at [1984] 149 ITR (St.) 5], wherein you were requested to issue necessary instructions for making deduction of income-tax at source from the "Winnings from lottery or crossword puzzles" at the rates given in Part II of the First Schedule to the Finance Act, 1984. 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 winni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction of income-tax at source from winnings from lotteries and crossword puzzles is given hereunder: (i) No tax will be deducted at source where the income by way of winnings from lottery or crossword puzzles is Rs. 1,000 or less. (ii) Where a 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) 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rising 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 thereon 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 winnings from lotteries or crossword puzzles should send to the Income-tax Officer having jurisdiction to assess him the statement in Form No. 26B qu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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