Tax is deducted at source U/s. 194B and 194BB on payments in respect of winnings from lotteries or crossword puzzle or card games and other game of any sort exceeding ₹10,000 is at ...................

The correct answer is - 0.3

Key Points

• Section 194B
  • Tax is deducted at source (TDS) under Section 194B for winnings from lotteries, crossword puzzles, and similar games.
  • The TDS rate is 30% for winnings exceeding ₹10,000.
• Section 194BB
  • Tax is deducted under Section 194BB for winnings from horse races.
  • The TDS rate for such winnings is also 30% for amounts exceeding ₹10,000.
• Threshold Limit
  • TDS is applicable only if the winning amount exceeds ₹10,000.
  • For amounts less than ₹10,000, TDS is not deducted.

Additional Information

• Nature of Winnings
  • Winnings can be in the form of cash, kind, or both.
  • If the winnings are in kind, the payer must ensure that the tax is paid before releasing the winnings.
• Exemptions
  • No TDS is deducted on winnings from games such as poker or fantasy sports unless they are specifically categorized under these sections.
• Reporting in ITR
  • Taxpayers must report such income under the head of "Income from Other Sources" in their Income Tax Return (ITR).
  • The tax already deducted at source can be claimed as credit while filing the ITR.