TDS SECTION 194B. 194B EXAMPLE| RATE | LIMIT

 Section 194B is a provision under the Income Tax Act of India. It relates to Tax Deducted at Source (TDS) on winnings from lotteries, crossword puzzles, card games, and other games of any sort. Under this section, a person responsible for paying such winnings is required to deduct TDS before making the payment to the winner. The TDS rate and other details are specified by the income tax authorities.

RATE

As of my last knowledge update in January 2022, the TDS rate under Section 194B for winnings from lotteries, crossword puzzles, card games, and other games of any sort is 30%. However, tax laws can change, so it's advisable to check the latest rates and provisions with the current tax regulations or a tax professional.

Limit

As of my last knowledge update in January 2022, there is no specified threshold limit for TDS under Section 194B. TDS is applicable on the entire amount of winnings from lotteries, crossword puzzles, card games, and other games of any sort. Keep in mind that tax laws can change, so it's important to verify the current provisions with the latest tax regulations or seek advice from a tax professional.

Applicability

Section 194B is applicable when there are winnings from lotteries, crossword puzzles, card games, and other games of any sort. The provision applies to the person responsible for making the payment of such winnings. The person is required to deduct TDS at the specified rate before disbursing the winnings to the recipient.

Example

If you win a lottery prize of, let's say, ₹10,000, the entity responsible for paying the lottery winnings would deduct TDS at the applicable rate under Section 194B before giving you the remaining amount. If the TDS rate is 30%, they would deduct ₹3,000 as TDS, and you would receive ₹7,000. The deducted TDS amount is then remitted to the government on your behalf. This ensures that taxes are collected at the source of income.