Section 194G- TDS on Commission on Sale of Lottery Tickets

Any income earned by a person in the form of commission, remuneration, or prize on lottery tickets (deductee) who has been selling lottery tickets (also stocking, distributing, and purchasing) is liable to pay taxes.

  1. Time of Deduction- TDS to be deducted at the time of credit or payment, whichever is earlier.
  2. Deductor- Any person responsible for paying any income by way of commission, remuneration or prize (by whatever name called) on stocking, distributing, purchasing, or selling lottery tickets shall be responsible to deduct tax at source.
  3. Deductee- The recipient can be a resident or non-resident.
  4. TDS Rate- TDS at a rate of 5% shall be applicable if the income is more than Rs. 15,000.
  5. Cases when TDS shall be deducted at a lower/Nil rate- The assessee case make an application in Form No. 13 to the Assessing Officer and obtain from him such certificate as may be appropriate authorizing the payer to deduct TDS at nil rate or at lower rate.
˜Authored by – CA Anushka Saraogi˜

Allocation of Interest in TDS Returns


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