India - Income Tax Act 2010 - Saarc

1.755 CH. XVII - COLLECTION AND RECOVERY - DEDUCTION AT SOURCE S. 194H59[Commission, etc., on the sale of lottery tickets. 60194G. 61 [(1)] Any person who is responsible for paying, on or after the 1st dayof October, 1991 to any person, who is or has been stocking, distributing,purchasing or selling lottery tickets, any income by way of commission, remunerationor prize (by whatever name called) on such tickets in an amountexceeding one thousand rupees shall, at the time of credit of such income to theaccount of the payee or at the time of payment of such income in cash or by theissue of a cheque or draft or by any other mode, whichever is earlier, deductincome-tax thereon at the rate of ten per cent.(2) 62 [***](3) 62 [***]Explanation.—For the purposes of this section, where any income is credited toany account, whether called “Suspense Account” or by any other name, in thebooks of account of the person liable to pay such income, such crediting shall bedeemed to be credit of such income to the account of the payee and theprovisions of this section shall apply accordingly.]63[Commission or brokerage 64 .194H. Any person, not being an individual or a Hindu undivided family, who isresponsible for paying, on or after the 1st day of June, 2001, to a resident,any income by way of commission (not being insurance commission referred toin section 194D) or brokerage, shall, at the time of credit of such income to theaccount of the payee or at the time of payment of such income in cash or by the59. Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.60. See rules 28, 28AA, 28AB, 30, 31, 31A, 31AB, 37 and 37BA and Form Nos. 13, 16A, 26AS and26Q.61. Renumbered by the Finance Act, 1992, w.e.f. 1-6-1992.62. Omitted by the Finance Act, 2003, w.e.f. 1-6-2003. Prior to their omission, sub-sections (2)and (3), as inserted by the Finance Act, 1992, w.e.f. 1-6-1992, read as under :“(2) Where the Assessing Officer is satisfied that the total income of any person who is orhas been stocking, distributing, purchasing or selling lottery tickets justifies the deductionof income-tax at any lower rate or no deduction of income-tax, as the case may be, theAssessing Officer shall, on an application made by such person in this behalf, give to himsuch certificate as may be appropriate.(3) Where any such certificate is given, the person responsible for paying the incomereferred to in sub-section (1) shall, until such certificate is cancelled by the AssessingOfficer, deduct income-tax at the rates specified in such certificate or deduct no tax, asthe case may be.”63. Reintroduced by the Finance Act, 2001, w.e.f. 1-6-2001. Earlier section 194H was omittedby the Finance Act, 1999, w.e.f. 1-4-2000. Prior to its omission, section 194H, was insertedby the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991 and later on amended by the Finance Act,1992, w.e.f. 1-6-1992.64. See rules 28, 28AA, 28AB, 30, 31, 31A, 31AB, 37 and 37BA and Form Nos. 13, 16A, 26AS and26Q. See also Circular No. 6/2003, dated 3-9-2003, Instruction No. 3/2009, dated 8-5-2009and Letter F. No. 275/70/2009-IT(B), dated 22-12-2009. For details, see Taxmann’s MasterGuide to Income-tax Act.