Section 194BB TDS on Winning from Horse Races

1) Who is responsible to deduct tax under Section 194BB of Income Tax Act, 1961?

Any person, who is responsible for paying to any person any income by way of winnings from any horse race an amount exceeding ₹10,000 shall deduct income-tax at the rates in force.

Any person here means a book maker or a person to whom a license has been granted by the Government under any law for the time being in force for horse racing in any race course or for arranging for wagering or betting in any race course.

2) When to Deduct TDS under Section 194BB?

At the time of payment of such income.

3) Rate of TDS under Section 194BB

Rate of TDS is 30%.

No surcharge and Health & Education Cess shall be added. Hence, TDS shall be deductible at basic rates.

4) Is it possible to get the payment without Tax Deduction or with Lower Tax Deduction under this section?

Not Possible

Points to be noted

1. Any person, here means a book-maker or a person to whom a license has been granted by the Government for horse racing or arranging for wagering, betting in any race course.

2. Race-income other than horse races like camel races etc. is not covered by this section.

194B and 194BB

Extract of Section 194BB – TDS on Winning from Horse Races

194BB.  Any person, being a bookmaker or a person to whom a licence has been granted by the Government under any law for the time being in force for horse racing in any race course or for arranging for wagering or betting in any race course, who is responsible for paying to any person any income by way of winnings from any horse race in an amount exceeding ten thousand rupees shall, at the time of payment thereof, deduct income-tax thereon at the rates in force.

(Republished with amendments)

Read Also:-