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Home Acts & Rules Bill Bills FINANCE BILL, 2016 Chapters List Chapter III DIRECT TAXES This

Clause 76 - Amendment of section 194G. - FINANCE BILL, 2016

FINANCE BILL, 2016
Chapter III
DIRECT TAXES
  • Contents

Amendment of section 194G.

76. In section 194G of the Income-tax Act, in sub-section (1), with effect from the 1st day of June, 2016,-

(i) for the words “one thousand rupees”, the words “fifteen thousand rupees” shall be substituted;

(ii) for the words “ten per cent.”, the words “five per cent.” shall be substituted.

 



 

Notes on Clauses:

Clause 76 of the Bill seeks to amend section 194G of the Income tax Act relating to commission, etc., on the sale of lottery tickets.

Under the existing provisions contained in the aforesaid section, deduction of income-tax at the rate of ten per cent. shall be made in a case where, the amount of income exceeding one thousand rupees relating to stocking, distribution, purchase or sale of lottery tickets, whether by way of commission or remuneration or prize is credited to the account of the payee or at the time of payment of such income in cash or by the issue of cheque or a draft or by any other mode, whichever is earlier during the financial year.

It is proposed to reduce the said rate of tax deduction from ten per cent. to five per cent. It is further proposed to increase the said threshold limit from one thousand rupees to fifteen thousand rupees.

These amendments will take effect from 1st June, 2016.

 
 
 
 

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