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TMI BlogDeduction of income-tax at source-Section 194B of the Income-tax Act, 1961-Deduction from winnings from lottery or crossword puzzle-Financial year 1977-78X X X X Extracts X X X X X X X X Extracts X X X X ..... t's circular No.217* (F.No.275/19/77-IT-B) dated March 31, 1977, on the above subject. 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 an amount exceeding Rs.1,000 is required to deduct income-tax thereon at rates specified in this behalf in the Finance Act of the relevant year. The rates of the deduction of income-tax at source for the financial year 1977-78 have been specified in Part II of the First Schedule to the Finance (No.2) Bill, 1977, and 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the prize in kind. Where, however, the prize is given only in kind no income-tax will be required to be deducted. (iii) Income-tax will be deductible at the aforesaid rates during the financial year 1977-78 from prizes given after 31st March, 1977, even if the relevant draw in respect of lottery or, as the case may be, the competition in respect of a crossword puzzle may have been held on or before that date. (iv) Where the lottery or crossword puzzle is paid in instalments, the deduction will be made at the time of actual payment of each instalment. (v) Income-tax will be deductible from the amount of the prize money paid to the owner of the lucky ticket with reference to the amount paid to him. Income-tax is not deductible from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f winnings from lotteries or crossword puzzles should issue a certificate in Form No. 19B showing therein the amount of the prize, the amount of tax deducted at source and the date of payment in the Government account. (c) The person making deduction of tax in accordance with section 194B from income by way of winnings from lotteries or crossword puzzles should send to the Income-tax Officer having jurisdiction to assess him the statement in Form No. 26B quarterly on July 15th, October 15th, January 15th and April 15th in respect of deductions made by him during the immediately preceding quarter. 4. These instructions may be brought to the notice of all concerned under the control of the State Government. 5. In cases of doubt the Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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