TDS on Commission on the sale of lottery tickets under section 194G

Section 194G requires the person, who is paying any income by way of commission / remuneration / prize on lottery tickets to the person who has been stocking / distributing / purchasing / selling the lottery tickets, to deduct TDS.

The provision of section 194G requires the Deductor to deduct TDS @ 5%.

It should be noted that no surcharge, education cess or SHE cess shall be levied on the said rate of 5%.

However, in case the PAN is not furnished, the Deductor is liable to deduct TDS @ 20% (maximum marginal rate).

Exemption limit under section 194D

There are two Instances when TDS is not deducted

• Commission paid does not exceed RS 15,000
• Self-declaration under Form 15G/15H