9911796707
TMI BlogTDS (i) u/s. 194B and 194BB from winnings from lotteries, crossword puzzles and horse races and (ii) under section 194G from commission, etc., paid on sale of lottery tickets--Financial year 1993-94--Instructions regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... the deduction of tax under sections 194B, 194BB and 194G of the Income-tax Act, 1961, was to be made during the financial year 1992-93 from winnings from lotteries, cross-word puzzles, horse-races and from commission, etc., paid on the sale of lottery tickets, were communicated. 2. There is no change in the rates of tax which will be applicable during the financial year 1993-94, in the matter of deduction of tax at source under sections 194B, 194BB and 194G of the Income-tax Act. The salient provisions relating to deduction of tax at source under the aforesaid sections are as follows : (i) As per section 194B, the person responsible for paying to any person any income by way of winnings from lotteries or cross-word puzzles, in an amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o in para 3). It is clarified in this regard that where any such income, e.g., commission, remuneration, etc., is credited to any account, whether called "suspense account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the tax will have to be deducted at source. It may be stated that persons engaged in the lottery business, whose total income bears no tax liability or bears a tax liability justifying deduction of tax at a rate lower than 10 per cent. can obtain from the Assessing Officer a certificate for deduction of tax at a lower rate or for no deduction of tax at source, as the case may be. Such person can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such tax is actually paid into the Government account. Reference in this regard is also invited to section 271C, according to which, a person who fails to deduct the whole or any part of the tax as required under these provisions, shall pay, by way of penalty, a sum equal to the amount of tax, not deducted by him. Further, section 276B lays down that if a person fails to pay to the credit of the Central Government the tax deducted at source by him, he shall be punishable with rigorous imprisonment for a term which shall not be less than 3 months but which may extend to seven years and with fine. (b) According to the provisions of section 203, every person responsible for deducting tax at source is required to furnish a certificate to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailure continues. (c) According to the provisions of section 203A, it is obligatory for all persons responsible for deducting tax at source to obtain a tax deduction account number (TAN) and quote the same in the challans, TDS certificates, returns, etc. Detailed instructions in this regard are contained in this Department's Circular No. 497, dated 9th October, 1987 (see [1988] 169 ITR (St.) 54). If a person fails to comply with the provisions of section 203A, he shall pay, by way of penalty under section 272BB, a sum which may extend to Rs. 5,000. (d) According to the provisions of section 206, read with rules 36A and 37 of the Income-tax Rules, the prescribed person in the case of every office of the Government, the principal officer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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