TDS on Commission of Sale of Lottery Tickets (Section 194G)

A complete guide of Section 194G TDS on Commission on sale of lottery tickets. Check here the exemption limit, TDS rates, time limit, TDS certificate, TDS return and persons responsible to deduct TDS.

Who is Liable to Deduct TDS Under Section 194G?

  • The persons who are paying any commission, remuneration or prize on lottery tickets to a person who has been stocking, distributing, purchasing or selling lottery tickets.

What is TDS Rate under section 194G?

  • The rate of TDS on commission on sale of lottery ticket is 5% (10% up to 31.5-2016)
  • No surcharge, education cess or SHEC shall be added to the above rates.
  • The rate of TDS will be 20% in all cases, if PAN is not quoted by the deductee.

Quick Summary of Section 194G (TDS on Commission on Sale of Lottery Tickets)

Person Responsible to Deduct Tax Stockist, distributor, etc. of lottery tickets
Exemption Limit Rs. 15,000
TDS Rates 5% ( 10% up to 31.5.2016) (No Surcharge, education cess or SHEC shall be added). The rate of TDS will be 20% in all cases, if PAN is not quoted by the deductee.
Time of Deduction of TDS At the time of payment or credit whichever earlier.
Time for Deposit of TDS Within one week from of the day of the month of tax deduction. For month of March, before 30th April.
Certificate of TDS Form 16A for each quarter is to be issued within 15 days from the due date for furnishing the statement of tax deducted at source under rule 31A i.e. on or before 15th August, 15th November, 15th February and 15th June
Quarterly Return of TDS In Form No. 26Q on or before 31st July, 31st October and 31st January for the first three quarters and on or before 31st May for the last quarter.
AO’s Certificate for Deduction at Lower Rate or Non Deduction Yes, application in Form No. 13. Appropriate certificate to be issued by AO.
Is Self Declaration by Payee for Non Deduction Admissible No
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