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.
Understanding the Scope of Section 194B
-Any person making payment of winning amount to any person is responsible for deducting TDS thereon
-Winnings from a lottery, crossword puzzle, card game, and any other game is covered within the scope of section 194B.
-TDS is to be deducted if the aggregate amount exceeds INR 10,000.
When the winning amount is payable in kind or is partly payable in cash and partly in kind. Then, in that case,
it is the Deductor’s responsibility to ensure that the TDS has been paid before releasing the winning amount.
Time of TDS deduction : The Deductor liable to deduction TDS under section 194B is required to deduct TDS at the time of payment.
Basic Threshold Limit : The basic threshold limit applicable to the section 194B is INR 10,000 i.e. if the aggregate amount exceeds INR 10,000 only than TDS is to be deducted.
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Rate of TDS under Section 194B : Section 194B TDS rate The Deductor would be liable to deduct TDS @ 30% under the section.
Regards
Compiled by CA Sunil Sakral
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