Quick Summary
Section 194B of the Act provides that the person responsible for paying to any person any income by way of winnings from any lottery or crossword puzzle or card game and other game of any sort in an amount exceeding ten thousand rupees shall, at the time of payment thereof, deduct income-tax thereon at the rates in force. 2. Section 194BB of the Act provides for similar provisions for deduction of tax at source for horse racing in any race course or for arranging for wagering or betting in an
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FAQ :
The new provisions for TDS on winnings from online games (Section 194BA) will take effect from 1st July 2023.
TDS will be deducted at source on net winnings in the user's account at the end of the financial year. If there's a withdrawal, tax will be deducted on the net winnings comprised in that withdrawal.
Winnings from online games will be taxed at a rate of thirty per cent from the assessment year 2024-25 onwards.
Yes, amendments to Sections 194B and 194BB regarding winnings from lotteries, horse racing, etc., will take effect from 1st April 2023, with the threshold of £10,000 applying to the aggregate amount in a financial year.
If net winnings are partly or wholly in kind, and the cash portion isn't enough to cover the tax liability, the payer must ensure tax is paid before releasing the winnings.
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