Section 194T

Section 194T of the Income-tax Act, 1961, is applicable from the Financial Year (FY) 2024-25. Key Points of Section 194T 1. *TDS on Winnings from Lotteries, Games, and Sports*: Section 194T mandates the deduction of Tax Deducted at Source (TDS) on winnings from lotteries, games, and sports. 2. *Threshold Limit*: TDS will be applicable on winnings exceeding ₹10,000 in a financial year. 3. *TDS Rate*: The TDS rate will be 5% of the winnings. Compliance Requirements 1. *TDS Deduction*: Deduct TDS on winnings exceeding ₹10,000 in a financial year. 2. *TDS Return*: File TDS returns (Form 26Q) quarterly. 3. *Issue TDS Certificate*: Issue a TDS certificate (Form 16B) to the winner. Effective Date Section 194T is applicable from April 1, 2024, and will be effective for the Financial Year 2024-25.

w.e.f. 1-4-2025:

Payments to partners of firms.

194T. (1) Any person, being a firm, responsible for paying any sum in the nature of salary, remuneration, commission, bonus or interest to a partner of the firm, shall, at the time of credit of such sum to the account of the partner (including the capital account) or at the time of payment thereof, whichever is earlier shall, deduct income-tax thereon at the rate of ten per cent.

(2) No deduction shall be made under sub-section (1) where such sum or the aggregate of such sums credited or paid or likely to be credited or paid to the partner of the firm does not exceed twenty thousand rupees during the financial year.

TDS under section 194T is applicable with effect from 1-4-2025, not with effect from assessment year 2025-26.