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TMI BlogDeduction of tax at source-Sections 194B and 194BB of the Income-tax Act, 1961-Deduction from winnings from lottery or crossword puzzle or horse race-Rates of tax applicable during the financial year 1989-90X X X X Extracts X X X X X X X X Extracts X X X X ..... ade during the financial year 1988-89 from winnings from lotteries or crossward puzzles or horse races were communicated. 2. According to the provisions of section 115BB of the Income-tax Act, 1961, any income of a casual and non-recurring nature of the type of winnings from lotteries, crossward puzzles, races including horse races, etc., will be charged income-tax at a flat rate of 40%. According to the provisions of sections 194B and 194BB, every persons responsible for paying to any person, whether resident or non-resident, any income by way of winnings from lotteries or crossward puzzles or horse races in an amount exceeding Rs. 5,000 is required to deduct income-tax therefrom at the rates specified in this behalf in the Finance Act of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fils the requirements mentioned in the Explanation to clause (26AA) of section 10 of the Income-tax Act, 1961. 4. (a) According to the provisions of section 203 of the Income-tax Act, every person responsible for deducting tax at source is required to furnish a certificate to the effect that tax has been deducted and to specify therein, inter alia, the amount deducted and other particulars that may be prescribed. The certificate has to be furnished within the prescribed period of one months to the person to whose account credit is given or to whom payment is made or the cheque or warrant is issued, as the case may be. By Notification No. S.O. 937(E), dated October 10, 1988*, old rule 31 of the Income-tax Rules, 1962, has been substituted b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r public body or association, every private employer and every other person responsible for deducting tax under the provisions of Chapter XVII of the Income-tax Act shall prepare, within the prescribed time after the end of each financial year, and deliver or cause to be delivered by the 31st May following the financial year to the designated Income-tax Officer the annual return of deduction of tax under section 194B from winnings from lotteries and crossward puzzles on Form No. 26B and that under section 194BB from winnings from horse races on Form No. 26BB prescribed under rule 37 of the Income-tax rules. It may be noted that the third copy of the TDS certificate issued to the assessee should be enclosed with the annual return. If a pers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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