194BB. Winnings from horse race - contains provisions relating to deduction of TDS on winnings from horse race. The Deductor is required to deduct TDS @ 30% if the winning amount exceeds INR 10,000.
Understanding the Scope of Section 194BB.
-Any bookmaker or the person to whom Government has granted a license for horse racing in any race course or for arranging for gambling or betting in any race course is liable to deduct TDS while making payment of the winning amount
-TDS is to be deducted if the aggregate amount exceeds INR 10,000.
ØTime of TDS deduction : The Deductor liable to deduction TDS under section 194BB is required to deduct TDS at the time of payment.
ØBasic Threshold Limit : The basic threshold limit applicable to the section 194BB is INR 10,000 i.e. if the aggregate amount exceeds INR 10,000 only than TDS is to be deducted.
ØRate of TDS under Section 194B : Section 194BB TDS rate The Deductor would be liable to deduct TDS @ 30% under the section.
Regards
Compiled by CA Sunil Sakral
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