Section 194B: TDS on Winnings from Lottery, Game Shows etc…

TDS shall be deducted on winnings from lottery, game shows and puzzles by the prize distributor.

1.  Applicability: Winning amount needs to be more than Rs 10,000

2.  Deductor: Prize distributor can be any person and shall deduct the TDS at the time of  payment

3.  TDS Rate: TDS at a flat rate of 30% shall be applicable on such income.

4.  Nature of Win: Winning can be in form of cash or kind. TDS needs to be deducted on both these components. Market value of the prize needs to be assessed and tax needs to be deducted on the assessed amount

5Points to Note:

    • TDS u/s 194B shall be deducted on the net winnings i.e. after considering bonus/commission paid to lottery agent
    • Deduction/expenditure shall not be allowed on such income to the prize recipient
˜Authored by – CA Anushka Saraogi˜

Section 194N – TDS on Cash Withdrawals

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