Scope of Section 194G of Income Tax Act:
Any income earned by a person in the form of commission, remuneration, or prize on lottery tickets (deductee) who has been selling lottery tickets (also stocking, distributing, and purchasing) is liable to pay taxes.
The person responsible for making such payment (deductor) for an income exceeding Rs 15,000 must deduct an income tax.
Who is required to deduct TDS u/s 194G ?
As per the provision of section 194G, Person who pays an income by way of commission or remuneration or prize to a person who sells lottery tickets.
What should be the time of tax deduction u/s 194G ?
The time of deduction is earlier of
- The credit of income to the account of the payee (or)
- Actual payment (in cash, cheque, draft or other modes)
Rate of TDS under Section 194G:
- The rate of tax deduction u/s 194G is 5%.
- No charges such as surcharge, education cess, and SHEC will be levied on the specified rate.
- If PAN is not quoted by the deductee, a tax deduction rate of 20% will be applicable.
- However, tax cannot be deducted in the case of payment does not exceed Rs 15,000.
Certificate of no or lower TDS under 194G:
- You can request the assessing officer (AO) via Form no. 13 and get a certificate that authorises the payer to make nil tax deduction or deduction at a lower rate.
- To get the benefits of such a facility, it is mandatory to quote your Permanent Account Number (PAN) as per Section 206AA(4).
Due date of TDS deposit and Filing of TDS returns:
The Deductor is liable to deposit TDS with the Government with following dates:
| Particulars | Due date of Deposite |
|---|---|
| April-February | 7th of Next following next Month |
| March month | 30th April |
The Deductor is liable to File TDS Returns with the Government with following dates:
| Quarter | Due Date for Return |
|---|---|
| April to June | 31st of July |
| July to September | 31st of October |
| October to December | 31st of October |
| January to March | 31st of May |
