FINANCIAL YEAR 1983-84
1745. Instructions for deduction of tax at source from winnings from lottery or crossword puzzle during financial year 1983-84 at the rates specified in Part II of First Schedule to Finance Act, 1983
1. I am directed to invite a reference to the Board’s Circular No. 338 [F. No. 275/17/82-IT(B)], dated 4-5-1982, wherein you were requested to issue necessary instructions for making deduction of income-tax at source from the “winnings from lottery or crossword puzzle” at the rates given in Part II of the First Schedule to the Finance Bill, 1982.
2. You are aware that under section 194B every person responsible for paying to any person, whether resident or non-resident, any income by way of winnings from any lottery or crossword puzzle in an amount exceeding Rs. 1,000 is required to deduct income-tax thereon at the rates specified in this behalf in the Finance Act of the relevant year. The rates of deduction of income-tax at source for the financial year 1983-84 specified in Part II of the First Schedule to the Finance Act, 1983, are as follows :
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Rates of income-tax including surcharge
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I. In the case of a person other than a company :
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(a) where the person is resident in India
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33.75 per cent (IT 30 per cent + SC 3.75 per cent);
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(b) where the person is not resident in India
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33.75 per cent (IT 30 per cent + SC 3.75 per cent);
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or
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income-tax and surcharge on income-tax in respect of the income at the rates prescribed in Sub-Paragraph I of Paragraph A of Part III of the First Schedule to the Finance Act, 1983, if the winnings from lottery or crossword puzzle had been the total income,
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whichever is higher.
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II. In the case of a company :—
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(a) where the company is a domestic company
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22.575 per cent (IT 21.5 per cent + SC 1.075 per cent);
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(b) where the company is not a domestic company
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73.5 per cent (IT 70 per cent + SC 3.5 per cent).
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3. There is no change in the main provisions of the law relating to deduction of income-tax at source from winnings from lotteries and crossword puzzles.
4. These instructions may please be brought to the notice of all concerned under the control of the State Government.
Circular : No. 365 [F. No. 275/22/83-IT(B)], dated 20-7-1983.
