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

 

Deduction of tax at source computed on the basis of Circular of 27-5-1987 to be increased by a surcharge at the rate of 5 per cent – Effective from 16-12-1987—

1. I am directed to invite reference to this Department’s Circu­lar No. 485, dated 27-5-1987 [Clarification 1] on the above subject and wherein the rates at which deduction of tax under sections 194B and 194BB to be made during the financial year 1987-88 from winnings from lottery or crossword puzzles or horse races were communicated to you.

2. It is brought to your notice that by section 3 of the Finance (Amendment) Act, 1987, the First Schedule to the Finance Act, 1987 has been amended. According to this amendment the amount of income-tax computed on the basis of the aforesaid circular shall be increased by a surcharge for the purposes of the Union calcu­lated at the rate of 5 per cent of such income-tax. The levy of surcharge comes into force with effect from 16-12-1987.

Circular : No. 507 [F.No. 275/22/88-IT(B)], dated 23-2-1988.

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