Section 194G: TDS on Commission on Sale of Lottery Tickets
Lottery tickets are popular in India. Yet, many are unaware that the sellers or agents of these tickets are required to adhere to tax deduction provisions. Let's explore Section 194G's terms.
Who needs to deduct TDS under Section 194G?
Under Section 194G, TDS must be deducted by anyone paying income via commission, remuneration, or lottery prize to a person involved in selling, stocking, distributing, or buying lottery tickets.
Tax Deduction Rate & Time u/s 194G
The tax deduction rate u/s 194G is 5%. Deduction happens at the earliest of either when the income is credited to the payee's account or the actual payment.
No TDS is needed if the income is below Rs.15000.
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