Section 194B and 194BB – TDS on winnings from lottery or crossword puzzle and TDS on winning from a horse race.
Continuing the series of TDS articles, in the present article, both the Section 194B and Section 194BB relating to TDS on winnings from lottery or crossword puzzle and TDS on winning from horse race, respectively, are covered.
Understanding the scope of Section 194B –
The Scope of Section 194B is summarized hereunder –
Understanding the scope of Section 194BB –
Time of TDS deduction –
The Deductor liable to deduction TDS under section 194B and / or Section 194BB is required to deduct TDS at the time of payment.
Basic Threshold Limit –
The basic threshold limit applicable to both the section 194B and 194BB is INR 10,000 i.e. if the aggregate amount exceeds INR 10,000 only than TDS is to be deducted.
Rate of TDS under Section 194B and Section 194BB
Section 194B TDS rate and Section 194BB TDS rate is same. The Deductor would be liable to deduct TDS @ 30% under both the sections.
Frequently Asked Questions (FAQ) –
What is Section 194B?
Section 194B contains provisions relating to deduction of TDS on winnings from lottery or crossword puzzle or any other game. The Deductor is required to deduct TDS @ 30% if the winning amount exceeds INR 10,000.
What percentage of TDS is deducted?
TDS is deducted @ 30% in case the provisions of section 194B and / or section 194BB relating to winning from lottery or crossword puzzle or any other game and / or winning from horse race are attracted.
Is income from horse racing taxable?
Yes, the income from horse racing is taxable, and if the winning amount from horse racing exceeds INR 10,000, the winner will receive the winning amount after TDS deduction.
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|Section 194A: TDS on interest other than interest on securities|
|Section 194C – TDS on Contractors|
|Section 194D – TDS on insurance commission|
|Section 194DA – TDS in respect of Life Insurance Policy|
|Section 194E – TDS on payment to Non-resident Sportsmen or Sports Association|
|TDS under Section 194EE and Section 194F|
|Section 194G TDS on Commission on Sale of Lottery Tickets|
|Section 194H – TDS on Commission or Brokerage|
|Section 194I of Income Tax Act, 1961 – TDS on Rent|
|Section 194IA TDS on transfer of immovable property|
|Section 194IB – TDS on Rent paid by Individual / HUF|
|Section 194LA: Payment of Compensation on acquisition of certain immovable property|
|TDS under Section 194LB, 194LBA, 194LBB and 194LBC|
|Section 194LC: TDS on income by way of interest from an Indian Company or a business trust|
|Section 194LD TDS on income by way of interest on certain bonds and Government Securities|
|Section 194J TDS on Fees for Professional or Technical Services|
|Section 194N – TDS on Cash Withdrawals|
|Section 194M: TDS on Payment of certain sum by certain Individual / HUF|
|Section 195 TDS on payment of any other sum to a non-resident|