Deduction of income-tax at source--Section 194B of the Income-tax Act, 1961--Deduction from winnings from lottery or crossword puzzles--Rates of tax applicable during the Financial year 1983-84 - Income Tax - 365/1983

Deduction of income-tax at source--Section 194B of the Income-tax Act, 1961--Deduction from winnings from lottery or crossword puzzles--Rates of tax applicable during the Financial year 1983-84 Circular No. 365 Dated 20/7/1983 From R.C. Handa, Director, Central Board of Direct Taxes. To All State Governments (including Union Territories Administrations, etc.). Subject : Deduction of income-tax at source--Section 194B of the Income-tax Act, 1961--Deduction from winnings from lottery or crossword puzzles--Rates of tax applicable during the Financial year 1983-84. Sir, I am directed to invite a reference to the Board's Circular No. 338 [F.No. 275/17/82-IT(B)], dated the 4th May, 1982 [printed at [1982] 135 ITR (St.) 89], wherein you were requested to issue necessary instructions for making deduction of income-tax at source from the "Winnings from lottery or crossword puzzles", at the rates given in Part II of the First Schedule to the Finance Bill, 1982. 2. You are aware that under section 194B of the Income-tax Act, 1961, every person responsible for paying to any person, whether resident or non-resident, any income by way of winnings from any lottery or crossword puzzle in any amount exceeding Rs. 1,000 is required to deduct income-tax thereon at the rates specified in this behalf in the Finance Act of the relevant year. The rates of deduction of income-tax at source for the financial year 1983-84, specified in Part II of the First Schedule to the Finance Act, 1983, are as follows: Rates of income-tax including surcharge I. In the case of a person other than a company : ( a ) where the person is resident in India 33.75 per cent (IT 30 per cent + SC 3.75 per cent); ( b ) where the person is not resident in India 33.75 per cent (IT 30 per cent + SC 3.75 per cent); or income-tax and surcharge on income-tax in respect of the income at the rates prescribed in Sub-Paragraph I of Paragraph A of Part III of the First Schedule to the Finance Act, 1983, if the winnings from lottery or crossword puzzle had been the total income, whichever is higher. II. In the case of a company :— ( a ) where the company is a domestic company 22.575 per cent (IT 21.5 per cent + SC 1.075 per cent); ( b ) where the company is not a domestic company 73.5 per cent (IT 70 per cent + SC 3.5 per cent). 3. There is no change in the main provisions of the law relating to deduction of income-tax at source from the winnings from lotteries and crossword puzzles. 4. These instructions may please be brought to the notice of all concerned under the control of the State Government. 5. The copies of this circular will be available with the Director of Inspection (Research, Statistics Public Relations), 6th floor, Mayur Bhawan, Connaught Circus, New Delhi-110 001. Extract from the Finance Act, 1983, Sub-Paragraph I of Paragraph A of Part II of the First Schedule Paragraph A Sub-Paragraph I In the case of every individual or Hindu undivided family or unregistered firm or other association of persons or body of individuals, whether incorporated or not or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which Sub-Paragraph II of this Paragraph or any other paragraph of this Part applies:- Rates of income-tax (1) where the total income does not exceed Rs. 15,000 Nil; (2) where the total income Rs. 15,000 but does not exceed Rs. 20,000 25 per cent. of the amount exceeds by which the total income exceeds Rs. 15,000; (3) where the total income exceeds Rs. 20,000 but does not exceed Rs. 25,000 Rs. 1,250 plus 30 per cent. of the amount by which the total income exceeds Rs. 25,000; (4) where the total income exceeds Rs. 25,000 but does not exceed Rs. 30,000 Rs. 2,750 plus 35 per cent. of the amount by which the total income exceeds Rs. 25,000; (5) where the total income exceeds Rs. 30,000 but does not exceed Rs. 50,000 Rs. 4,500 plus 40 per cent. of the amount by which the total income exceeds Rs. 30,000; (6) where the total income exceeds Rs. 50,000 but does not exceed Rs. 60,000 Rs. 12,500 plus 50 per cent. of the amount by which the total income exceeds Rs. 50,000; (7) where the total income exceeds Rs. 60,000 but does exceed not Rs. 70,000 Rs. 17,500 plus 52.5 per cent. of the amount by which the total income exceeds Rs. 60,000; (8) where the total income exceeds Rs. 70,000 but does not exceed Rs. 85,000 Rs. 22,750 plus 55 per cent. of the amount by which the total income exceeds Rs. 70,000; (9) where the total income exceeds Rs. 85,000 but does not exceed Rs. 1,00,000 Rs. 31,000 plus 57.5 per cent. of the amount by which the total exceeds Rs. 85,000; (10) where the total income exceeds Rs. 1,00,000 Rs. 39,625 plus 60 per cent. of the amount by which the total income exceeds Rs. 1,00,000. Surcharge on income-tax The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of twelve and half per cent. of such income-tax. Yours faithfully, (Sd.) R.C. Handa Director Central Board of Direct Taxes.