Income-tax Act, 2025

Tax on certain incomes - Section 194

Tax on certain incomes.

194. (1) Irrespective of anything contained in any other provision of this Act, where the total income of an assessee as mentioned in column B of the Table below, includes income of the nature specified in column C of the said Table, the income-tax payable by such assessee, for a tax year, shall be the aggregate of

(a) income-tax calculated on income mentioned in column C, at the rate mentioned in column D, subject to the conditions specified in column E; and

(b) income-tax with which the assessee would have been chargeable had his total income been reduced by income mentioned in column C thereof.

TABLE

Sl. No.AssesseeIncomeRate of taxConditions

ABCDE

1.Any person.
Winnings (other than from any online game) from

(a) lottery; or

(b) crossword puzzle; or

(c) race including horse race (not being income from the activity of owning and maintaining race horses); or

(d) card game and other game of any sort; or

(e) gambling or betting of any form or nature.

30%Nil.

2.A person, resident in India and who is a patentee (herein referred to as an eligible assessee).Royalty in respect of a patent developed and registered in India.10%

(a) No deduction in respect of any expenditure or allowance shall be allowed to the eligible assessee under any provision of this Act in computing his income referred to in column C;

(b) an option for taxation of income by way of royalty in respect of a patent developed and registered in India is exercised in the prescribed manner, on or before the due date specified under section 263(1) for furnishing the return of income for the relevant tax year;

(c) where an option is exercised under clause (b) and the eligible assessee does not offer its income for taxation as per the provisions of columns C and D for any of the five tax years, succeeding such tax year, then such asse .... To read the full section download the app from Google Play store