Section194BB TDS on Winnings from horse race

Any person, being a bookmaker or a person to whom a licence has been granted by the Government under any law for the time being in force for horse racing in any race course or for arranging for wagering or betting in any race course, who is responsible for paying to any person any income by way of winnings from any horse race in an amount exceeding ten thousand rupees shall, at the time of payment thereof, deduct income-tax thereon at the rates in force.

Summary of Section 194BB of the Income Tax Act

• Deductor/ Payer: Any person, being
  • A bookmaker or Turf accountant
  • A person to whom a licence has been granted by the Government for horse racing in any race course or
  • A person to whom a licence has been granted by the Government for arranging for wagering or betting in any race course
• Deductee/ Payee: Any Person (whether resident or non-resident)
• Nature of Payment: Income by way of winnings from any horse race
• Rate of TDS:
  • TDS to be deducted at flat rate @ 30%
  • Cess @ 4% will be added in above rate in case of deductee is a non-resident
• Threshold Limit: Exceeding Rs. 10,000/-
• Time of deduction: At the time of payment
• Point to be Noted:
  • If the prize is paid in instalments, the tax deduction will be made at the time of payment of each installment.