With the aim of bringing more transparency and offering detailed information to the taxpayer, the Income Tax Department has recently launched ‘Annual Information Statement’ (AIS).
Along with the Annual Information Statement, a simplified ‘Taxpayer Information Summary’ (TIS) was also launched. Notably, information derived in TIS will be taken up and used for pre-filing of an income tax return.
In the present article, we will understand the AIS information category ‘Winning from lottery or crossword puzzle u/s 115BB’.
In the case of ‘Winning from lottery or crossword puzzle’, the payer/ deductor is liable to deduct TDS under provisions of section 194B of the Income Tax Act, 1961. Accordingly, the payer/ deductor is required to furnish the return of TDS in Form 26Q on a quarterly basis.
The amount reflected by the payer/ deductor in TDS return will be taken as a source of information in AIS under the category ‘Winning from lottery or crossword puzzle u/s 115BB’.
As stated above, AIS will grab the figure under the said category from the TDS return filed by the deductor.
Accordingly, the amount of ‘Winning from lottery or crossword puzzle u/s 115BB’ will be held taxable under the hands of the receiver under the head ‘Income from Other Sources’ in AIS.