Section 194B of Income Tax Act for AY 2023-24

Section 194B of Income Tax Act 1961 as amended by Finance Act 2022 and Income-tax Rules 1962. Interest other than “Interest on securities”.

Amended and updated notes on section 194B of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Interest other than “Interest on securities”.

Chapter XVII (Sections 190 to 234G) of the Income Tax Act 1961 deals with the provisions related to collection and recovery of tax. Section 194B of IT Act 1961 provides for Interest other than “Interest on securities”.

Recently, we have discussed in detail section 194A (Interest other than “Interest on securities”) of IT Act 1961. Today, we learn the provisions of section 194B of Income-tax Act 1961. The amended provision of section 194B is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 194B of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-194B: Interest other than “Interest on securities”

The person responsible for paying to any person any income by way of winnings from any lottery or crossword puzzle or card game and other game of any sort in an amount exceeding ten thousand rupees shall, at the time of payment thereof, deduct income-tax thereon at the rates in force :

Provided that in a case where the winnings are wholly in kind or partly in cash and partly in kind but the part in cash is not sufficient to meet the liability of deduction of tax in respect of whole of the winnings, the person responsible for paying shall, before releasing the winnings, ensure that tax has been paid in respect of the winnings.


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