1746. Instructions for deduction of tax at source from winnings from lottery or crossword puzzle during financial year 1982-83 at the rates specified in Part II of First Schedule to Finance Bill, 1982
1. I am directed to invite a reference to the Board’s Circular No. 303 [F. No. 275/6/81-IT(B)], dated 12-5-1981, 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 Bill, 1981.
2.The Finance Bill, 1982 does not propose any change in the rates of deduction of tax at source from such income for the financial year 1982-83 in Part II of the First Schedule thereof. However, some changes have been proposed in Sub-Paragraph I of Paragraph A of Part III of the First Schedule to the said Financial Bill, a copy of which is annexed. The tax should, therefore, continue to be deducted at source during the financial year 1982-83, at the rates intimated in the Board’s Circular referred to in para 1 above except where the rates prescribed in Sub-Paragraph I of Part III of the First Schedule are applicable. The deduction of tax should be made in accordance with the annexed Sub-Paragraph I , wherever it is applicable.
3. These instructions are issued only with a view to helping the persons responsible for making deductions of tax under the provisions of the Income-tax Act. The Finance Act of the relevant year through which the changes in the tax structure are made should always be referred to for any difference of opinion.
Circular : No. 338 [F.No. 275/17/82-IT(B)], dated 4-5-1982.