FINANCIAL YEAR 1987-88
Instructions for deduction of tax at source from winnings from lottery or crossword puzzle or horse race during financial year 1987-88 at the rates specified in Part II of First Schedule to Finance Act, 1987
“203A. (1) Every person deducting tax in accordance with the provisions of sections 192 to 194, section 194A, section 194B, section 194BB, section 194C, section 194D and section 195, if he has not been allotted any tax deduction account number shall, within such time as may be prescribed, apply to the Income-tax Officer for the allotment of a tax deduction account number.
(2) Where a tax deduction account number has been allotted to a person, such person shall quote such number;
(a) in all challans for the payment of any sum in accordance with the provisions of section 200;
(b) in all certificates issued in accordance with the provisions of section 203;
(c) in all the returns delivered in accordance with the provisions of sections 206, 206A and 206B to any income-tax authority; and
(d) in all other documents pertaining to such transactions as may be prescribed in the interests of revenue.”
The Finance Act, 1987 also has substituted with effect from 1-6-1987 section 206, with the following new section :
“206. The prescribed person in the case of every office of Government, the principal officer in the case of every company, the prescribed person in the case of every local authority or other public body or association, every private employer and every other person responsible for deducting tax under the foregoing provisions of this Chapter shall prepare, within the prescribed time after the end of each financial year, and deliver or cause to be delivered to the prescribed income-tax authority, such returns in such form and verified in such manner and setting forth such particulars as may be prescribed.”
A detailed circular in this regard will be issued separately. In the meantime, the person responsible for deducting tax at source under sections 194B and 194BB should apply to the concerned Income-tax Officer for the allotment of tax deduction account number.
Rates of income-tax
|(i) In the case of a person other than a company :|
|(a) where the person is resident in India||40 per cent;|
|(b) where the person is not resident in the amount of the income;||income-tax at 30 per cent of India|
|income-tax in respect of income at the rates prescribed in Sub-Paragraph I of Paragraph A of Part III of the First Schedule to the Finance Act, 1987 [Annex I], if such income had been the total income,|
|whichever is higher.|
|(ii) In the case of a company :|
|(a) where the company is a domestic company||21.5 per cent;|
|(b) where the company is not a domestic company||65 per cent.|
Explanation : For the removal of doubt, it is however clarified that on finalising the assessment, the amount of gross winnings should be taxed in accordance with section 115BB and tax shall be levied on the amounts in cases of all such persons at the rate of 40 per cent as provided in section 115BB.
Circular : No. 485 [F. No. 275/42/87-IT(B)], dated 27-5-1987.