1756. Instructions regarding application for certificate for deduction of tax at lower rates and obligations/liabilities of persons deducting tax at source under the section

1. Reference is invited to this Ministry’s Circular No. 85, dated 29-5-1972, on the subject mentioned above.

2. Rules relating to the provisions for deduction of income-tax at source from income by way of winnings from lottery or crossword puzzle have since been framed. The following instructions may please be noted for general guidance :

1. Application for certificate for deduction of tax at lower rates – Under section 197(1)(a), it is open to any person (other than a company) who is in receipt of income by way of winnings from lottery/crossword puzzle to make an application to the Income-tax Officer concerned and obtain from him a certificate authorising the payer to deduct tax at such lower rate or deduct no tax, as may be appropriate to his case. This application for the certificate will have to be made in the newly prescribed Form No. 13B.

2. Obligations and liabilities of the persons deducting tax at source under section 194B

l TO PAY TAX TO THE CREDIT OF THE CENTRAL GOVERNMENT – As per rule 30 of the Income-tax Rules, 1962, any tax deducted by or on behalf of the Government has to be paid to the credit of the Central Government on the same day by book adjustment. In other cases, the tax deducted is required to be paid to the credit of the Central Government within one week from the date of such deduction or the date of receipt of the challan by the person making the deduction, as the case may be.

l TO ISSUE CERTIFICATE OF DEDUCTION – The person responsible for deducting tax is required to give to the person receiving the winnings a certificate which will have to be in Form No. 19B.

l TO FURNISH QUARTERLY RETURNS OF DEDUCTION OF TAX – The person responsible for deducting tax is also required to furnish to the Income-tax Officer having jurisdiction to assess him a return in Form No. 26B quarterly on July 15, October 15, January 15 and April 15 in respect of the deductions made during the immediately preceding quarter. Such a return is, however, not required to be sent if the tax is deducted by or on behalf of the Government.

3. These instructions may please be brought to the notice of all disbursing officers and State undertakings under the control of the State Government.

Circular : No. 94 [F. No. 275/9/72-ITJ], dated 15-11-1972

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