TDS on commission etc. on the sale of lottery tickets [Section 194G] | AY 2019-20 onwards

Last udpated: Jan. 11, 2019, 5:55 p.m.


Under section 194G, the person responsible for paying to any person, who is or has been stocking, distributing, purchasing or selling lottery tickets, any income by way of commission, remuneration or prize (by whatever name called) on lottery tickets shall deduct income-tax thereon.

Limit and Rate of TDS

TDS has to be deducted if amount exceeds Rs 15,000/- at 5%

Time of deduction of tax

Such deduction should be made at the time of credit of such income to the account of the payee or at the time of payment of such income by cash, cheque, draft or any other mode, whichever is earlier.

Where any such income is credited to any account, whether called “Suspense Account” or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.

Posted by CA Ankit Sharma under Income-Tax

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