Commission etc. on the sale of lottery tickets [Section 194G] under Deduction of Tax at Source :

(1) Under section 194G, the person responsible for paying any income by way of commission, remuneration or prize (by whatever name called) on lottery tickets in an amount exceeding Rs 1,000 [ wef from 1st June 2016 – amount limit has been increased to Rs 15,000/-  (FY 2016-2017 / AY 2017-2018 )] shall deduct income-tax thereon at the rate of 10%.[ wef from 1st June 2016 – rate  has been decreased to  5%  (FY 2016-2017 / AY 2017-2018 )]

(2) 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.

(3) 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.