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TDS on lottery winnings and horse race bets: New rule for a single transaction
The government has simplified the TDS rules concerning winnings from lotteries, crossword puzzles, and horse races by removing the aggregate limit of Rs 10,000 in a financial year.
Previously, TDS was deducted when total winnings crossed Rs 10,000 in a year, regardless of whether they were received in multiple smaller amounts. TDS will now be deducted only when a single transaction exceeds Rs 10,000.
Example: Earlier, three separate lottery winnings of Rs 8,000 each, amounting to a total of Rs 24,000, would have resulted in TDS being applicable, as the combined amount exceeded Rs 10,000. Under the new rule, no TDS will be deducted as no individual transaction surpasses Rs 10,000.
The government has simplified the TDS rules concerning winnings from lotteries, crossword puzzles, and horse races by removing the aggregate limit of Rs 10,000 in a financial year.
Previously, TDS was deducted when total winnings crossed Rs 10,000 in a year, regardless of whether they were received in multiple smaller amounts. TDS will now be deducted only when a single transaction exceeds Rs 10,000.
Example: Earlier, three separate lottery winnings of Rs 8,000 each, amounting to a total of Rs 24,000, would have resulted in TDS being applicable, as the combined amount exceeded Rs 10,000. Under the new rule, no TDS will be deducted as no individual transaction surpasses Rs 10,000.
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