1) Who is responsible to deduct tax under Section 194BB of Income Tax Act, 1961?

Any person, who is responsible for paying to any person any income by way of winnings from any horse race an amount exceeding ₹10,000 shall deduct income-tax at the rates in force.

Any person here means a book maker or a person to whom a license has been granted by the Government under any law for the time being in force for horse racing in any race course or for arranging for wagering or betting in any race course.

2) When to Deduct TDS under Section 194BB?

At the time of payment of such income.

3) Rate of TDS under Section 194BB

Rate of TDS is 30%.

No surcharge and Health & Education Cess shall be added. Hence, TDS shall be deductible at basic rates.

TDS on Winning from Horse Races

4) Is it possible to get the payment without Tax Deduction or with Lower Tax Deduction under this section?

Not Possible

Points to be noted

1. Any person, here means a book-maker or a person to whom a license has been granted by the Government for horse racing or arranging for wagering, betting in any race course.

2. Race-income other than horse races like camel races etc. is not covered by this section.

194B and 194BB

194B 194BB
Winning from lottery or crossword puzzle or card game and other game of any sort Winning from horse race
30% 30%
Every person responsible for paying any person Book maker or a person whom license has been issued by government for horse racing or for wagering
TDS shall be deductible if the amount exceeds Rs. 10,000 TDS shall be deductible if the amount exceeds Rs. 10,000
Liable to deduct the time of payment Liable to deduct the time of payment
If the winning is wholly in kind or partly in kind, Then the available cash shall be used to pay the taxes first

Extract of Section 194BB – TDS on Winning from Horse Races

194BB.  Any person, being a bookmaker or a person to whom a licence has been granted by the Government under any law for the time being in force for horse racing in any race course or for arranging for wagering or betting in any race course, who is responsible for paying to any person any income by way of winnings from any horse race in an amount exceeding ten thousand rupees shall, at the time of payment thereof, deduct income-tax thereon at the rates in force.

(Republished with amendments)

Read Also:-

SECTION TAXGURU LINKS
192 Section 192 TDS on Salary- Analysis
192A Section 192A | TDS on Payment of Accumulated balance due to an Employee
193 Section 193 TDS from Interest on Securities – Analysis
194 Section 194 TDS on payment of dividend
194A Section 194A TDS on Interest (other than Interest on Securities)
194B Section 194B TDS on winnings from Lottery, Game Shows & Puzzle etc
194BB Section 194BB TDS on Winning from Horse Races
194C Section 194C TDS on Payment to Contractor
194D Section 194D TDS on Insurance Commission- Analysis
194DA Section 194DA TDS on Payment in respect of Life Insurance Policy
194E Section 194E TDS on Payments to Non-Resident Sportsmen or Sports Association
194EE Section 194EE TDS on Payments in respect of Deposit under NSS
194F Section 194F TDS on Payments on account of repurchase of units by Mutual Fund or UTI
194G Section 194G TDS on Commission on Sale of Lottery Tickets- Analysis
194H Section 194H TDS on Commission & Brokerage- Analysis
194I Section 194I TDS on Rent – Analysis
194-IA Section 194IA TDS on Purchase of Immovable Property
194-IB Section 194IB TDS on Rent of Property
194-IC Section 194IC TDS on Payment Made Under Specified Agreement
194J Section 194J TDS on Professional or Technical Fees
194K Section 194K TDS on Income In Respect of Units of Mutual Fund
194-LA Section 194LA TDS on Payments of Compensation on Acquisition of certain Immovable Property
194-LB Section 194LB TDS on Income by way of Interest from Infrastructure Debt Fund 
194-LBA Section 194LBA TDS on Certain Income from Units of a Business Trust
194-LBB Section 194LBB TDS on Income in Respect of Units of Investment Fund
194-LBC Section 194LBC TDS on Income in Respect of Investment in Securitization Trust
194-LC Section 194LC | TDS on Interest Income from Indian Company or Business trust
194-LD Section 194LD TDS on Interest Income on certain Bonds/Government Securities
194M Section 194M TDS on payments of certain Sums by Individual & HUF
194N Section 194N TDS on cash withdrawal from banks/post offices
194O Section 194O TDS on E-commerce Operator- Analysis
194P Section 194P Deduction of tax in case of specified senior citizen
194Q Section 194Q Deduction of tax at source on payment of certain sum for purchase of goods
195 Section 195 TDS on Non-Resident Payments
195A Section 195A Income Payable ‘Net of Tax’
196B Section 196B TDS on long term capital gains from units referred to in section 115AB
196C Section 196C TDS on Income from foreign currency bonds or GDRs
196D Section 196D TDS on Income of foreign institutional investors from securities
197 Section 197 Certificate For TDS Deduction at Lower Rate
197A Section 197A – No TDS Deduction – Form 15G & Form 15H
198 Section 198 Tax Deducted at Source shall be deemed to be income received
200 (1) & (2) Section 200(1) & (2) Time Limit for Deposit of Tax Deducted at Source
200 (3) Section 200(3) Forms & Time Limit for Submitting Quarterly TDS Returns
203 Section 203 TDS Certificate
200A Section 200A Processing of Statements of Tax Deducted at Source
201 Section 201 Consequences of Non-Compliance to TDS
203A Section 203A Tax Deduction And Collection Account Number
206AA Section 206AA Mandatory Requirement of Furnishing PAN-TDS
206AB &
206CCA
Section 206AB & 206CCA Higher Rate of TDS/TCS in Case of Non-Filers of Return
206C Section 206C Tax Collection at Source (TCS)
206CC Section 206CC Mandatory Requirement of Furnishing PAN
40(a)(i) Disallowance for Non deduction of Tax at Source

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