TDS deduction in case of non PAN in Income from card games

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If a minor earns 50k rupees from online game.Than how can a card games businessmen deduct TDS in such case?
If minor parents apply for the PAN card ? Than what are the provision applied while filing ITR.

Thank You
Replies (1)

As per proviso to section 64(1A), if the income of the minor is due to the application of skill, talent or specialised knowledge and experience, clubbing provisions will not be applicable. As a result, in the above case, clubbing provisions will not be applicable and the Rs. 50,000 will be considered as income of the minor.

As per Section 194B, since the winnings is more than Rs. 10,000, TDS will be applicable. In a case where the winnings are wholly in kind or partly in cash and partly in kind but the part in cash is not sufficient to meet the liability of deduction of tax in respect of whole of the winnings, the person responsible for paying shall, before releasing the winnings, ensure that tax has been paid in respect of the winnings.

This means, the businessman will need to deduct TDS before releasing the payment in cash. Or if the winnings are in kind, the businessman will need to pay TDS to the government and collect the TDS amount from the minor before releasing the winnings in kind.

If the minor does not have a PAN, TDS will need to be deducted at 30% as per Section 206AA.

If the minor gets/has a PAN, normal TDS rate at 30% as per section 194B will need to be deducted.

The applicable ITR will be ITR2 and the details to be filled in 'Schedule OS' - Winnings from lotteries, crossword puzzles etc. chargeable u/s 115BB.


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