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

Section 194G of Income Tax Act 1961 amended by Finance Act 2022 and Income-tax Rules, 1962. Commission, etc., on the sale of lottery tickets.

Amended and updated notes on section 194G 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 Commission, etc., on the sale of lottery tickets.

Chapter XVII (Sections 190 to 234G) of the Income Tax Act 1961 deals with the provisions related to collection and recovery of tax. Section 194G of IT Act 1961 provides for Commission, etc., on the sale of lottery tickets.

Recently, we have discussed in detail section 194F (Payments on account of repurchase of units by Mutual Fund or Unit Trust of India) of IT Act 1961. Today, we learn the provisions of section 194G of Income-tax Act 1961. The amended provision of section 194G 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 194G 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-194G: Commission on sale of lottery tickets

Section 194G(1) of Income Tax Act

Any person who is responsible for paying, on or after the 1st day of October, 1991 to any person, who is or has been stocking, distributing, purchasing or selling lottery tickets, any income by way of commission, remuneration or prize (by whatever name called) on such tickets in an amount exceeding fifteen thousand rupees shall, at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of five per cent.

Sub-sections (2) & (3) [Omitted]

Explanation: For the purposes of this section, where any 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.


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