FINANCIAL YEAR 1990-91
1738. Instructions for deduction of tax at source from winnings from lottery, crossword puzzles or horse races – Rates of tax applicable during the financial year 1990-91Online GST Certification Course by TaxGuru & MSME- Click here to Join
1. Reference is invited to this department’s Circular No. 536, dated 6-7-1989 on the above subject wherein the rates at which deduction of tax under sections 194B and 194BB to be made during the financial year 1989-90, from winnings from lotteries or crossword puzzles or horse races were communicated.
2. The Finance Act, 1990 does not propose any change in the rates of tax and surcharge applicable in the matter of deduction of tax at source under sections 194B and 194BB of the Income-tax Act, 1961.
3. The aforesaid Circular explains the rate of tax and surcharge applicable in the matter of deduction of tax at source under sections 194B and 194BB in the case of winnings from lotteries, crossword puzzles and horse races. It also explains the duties devolving upon the persons responsible for paying any income of the nature of winnings from lotteries, crossword puzzles and horse races to deduct tax on the amount and also the liability to which such persons will be exposed in the case of failure to pay tax so deducted to the credit of the Central Government within the stipulated time, failure to furnish the annual return, etc. The instructions contained in the aforesaid Circular will be applicable during the current financial year also.
Circular : No. 569, dated 27-7-1990.