Income Tax Act

Official PDF pages 481–485

SOURCE PDF PAGE 481
Sl.
No.
Nature of income or
sum
Payer   Rate
Threshold limit
A   B   C   D
( b )   crossword puzzle;
or
( c )   card   game   and
other game of any
sort; or
( d )   gambling or bet -
ting of any form or
nature whatsoever.
2 .   Any income by way of
winnings from   online
game.
Any person.   Rate:   Rates in force.
_____
Threshold limit:
As per Note 1.
3.   Any   income   by   way
of winnings from any
horse race.
Any   person,   being   a
bookmaker or a person
to whom a licence has
been   granted   by   the
Government under any
law for the time being
in force for horse racing
in any race course or for
arranging for wagering
or betting in any race
course.
Rate:   Rates in force.
_____
Threshold limit:
`   10,000 in case of a
single transaction.
4 .   Any income, credited or
paid to a person, who
is or has been stocking,
distributing, purchasing
or selling lottery tickets,
by way of commission,
remuneration or prize
(by   whatever   name
called) on such tickets.
Any person.   Rate:   2%
_____
Threshold limit:
`   20,000.
5 .   Any sum, paid in cash,
from   one   or   more
accounts   maintained
by any person (herein
referred as recipient).
Any person, being, —
( a )   a banking compa -
ny;
( b )   a co-operative so -
ciety   engaged   in
carrying   on   the
Rate:   2%
_____
Threshold limit:   ( a ) three
crore rupees in case of
recipient being, a co-
operative society; or

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SOURCE PDF PAGE 482
Sl.
No.
Nature of income or
sum
Payer   Rate
Threshold limit
A   B   C   D
business of bank -
ing; or
( c )   a post office.
( b ) one crore rupees in
case of recipient being
person other than a co-
operative society.
6 .   Any amount referred to
in section 80CCA(2)( a )
of the Income-tax Act,
1961 (43 of 1961).
Any person.   Rate:   10%
_____
Threshold limit:
`   2,500.
7 .   Any sum in the nature
of salary, remuneration,
commission, bonus or
interest paid to a partner
of the firm or credited to
his account (including
capital account).
Any person, being a firm.   Rate:   10%
_____
Threshold limit:
`   20,000.
Note 1. —For serial number 2, tax shall be deducted—
( a )   on net winnings in the user account of the payee at the end of the tax year;
( b )   where there is any withdrawal from user account during the tax year, the tax
shall be deducted at the time of such withdrawal on the net winnings comprised
in such withdrawal as well as on the remaining amount of net winnings in user
account at the end of the tax year,
where   the   net   winnings   in   each   case   is   computed   in   the   such   manner   as   may
be prescribed.
Note 2.— For serial numbers 1 and 2, where the winnings or net winnings, as the case may
be,—
( a )   is wholly in kind; or
( b )   is partly in kind and partly in cash, but such part in cash is not sufficient to meet
the liability of deduction of tax in respect of the whole of such winnings,
then, the person responsible for paying shall ensure that the tax required to be deducted has
been paid, before releasing the winnings.
Note 3.— For serial number 4, the person responsible for making the payment shall deduct tax
at the time of credit of such sum or at the time of payment of such sum in cash or by issue
of a cheque or a draft or by any other mode, whichever is earlier.
(4) The deduction of tax at source shall not be made under the provisions referred
to in column B of the Table below, in respect of the income or sum along with the
conditions, specified in column C:

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SOURCE PDF PAGE 483
TABLE
FOR NO DEDUCTION AT SOURCE
Sl.
No.
Provisions for tax
deduction at source
Condition for no deduction on income or sum
A   B   C
1 .   Commission or Broker -
age referred to in section
393(1) [Table: Sl. No.
1( ii )].
Commission or brokerage payable by Bharat
Sanchar Nigam Limited or Mahanagar Tele -
phone Nigam Limited to their public call office
franchisees.
2 .   Rent referred to in sec -
tion 393(1) [Table: Sl.
No. 2( ii )].
Income by way of rent credited or paid to a busi -
ness trust, being a real estate investment trust,
in respect of any real estate asset, referred to in
Schedule V (Table: Sl. No. 4), owned directly by
such business trust.
3 .   Compensation on acqui -
sition of certain immov -
able property referred to
in section 393(1) [Table:
Sl. No. 3( iii )].
Income by way of any award or agreement which
has been exempted from levy of income-tax under
section 96 of the Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation
and Resettlement Act, 2013 (30 of 2013).
4 .   Income   in   respect   of
units referred to in sec -
tion 393(1) [Table: Sl.
No. 4( i )].
If income is of the nature of capital gain.
5 .   Income from units of a
business trust referred to
in section 393(1) [Table:
Sl. No. 4( ii )].
Income of the nature referred to in Schedule
V [Table: Sl. No. 3.B( b )], if the special purpose
vehicle referred to in the said serial number has
not exercised the option under section 200.
6 .   Interest   on   securities
referred to in section
393(1) [Table: Sl. No.
5( i )].
( a )   Interest payable on—
( i )   National Development Bonds;
( ii )   such debentures, issued by such insti -
tution or authority or any other person
as the Central Government may, by
notification, specify in this behalf;
( iii )   any security of the Central Government
or a State Government, other than—
( A )   8% Savings (Taxable) Bonds,
2003; or
( B )   7.75% Savings (Taxable) Bonds,
2018; or

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SOURCE PDF PAGE 484
Sl.
No.
Provisions for tax
deduction at source
Condition for no deduction on income or sum
A   B   C
( C )   Floating Rate Savings Bonds,
2020 (Taxable); or
( D )   any other security of the Central
Government or State Govern -
ment as the Central Government
may, by notification, specify in
this behalf;
( b )   interest payable to—
( i )   the Life Insurance Corporation of
India   established   under   the   Life
Insurance   Corporation   Act,   1956
(31 of 1956), in respect of any se -
curities owned by it or in which
it   has   full   beneficial   interest;   or
( ii )   the General Insurance Corporation of
India or to any of the four companies,
formed by virtue of the schemes made
under section 16(1) of the General
Insurance Business (Nationalisation)
Act, 1972 (57 of 1972), in respect of
any securities owned by the Corpora -
tion or such company or in which the
Corporation or such company has full
beneficial interest; or
( iii )   any other insurer in respect of any
securities owned by it or in which it
has full beneficial interest; or
( iv )   a “business trust”, as defined in section
2( 21 ) ,   in respect of any securities, by
a special purpose vehicle referred to
in Schedule V (Table: Sl. No. 3).
7 .   Interest other than inter -
est on securities referred
to   in   section   393(1)
[Table: Sl. No. 5( ii ) and
5( iii )].
( a )   Interest income credited or paid to—
( i )   any banking company  
82
[ or any co-op -
erative society engaged in carrying on
the business of banking (including a
co-operative land mortgage bank) ] ; or
( ii )   any financial corporation established
by or under a Central Act or State Act
or Provincial Act; or
82.   Inserted by the Finance Act, 2026, w.e.f.   1-4-2026 .

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SOURCE PDF PAGE 485
Sl.
No.
Provisions for tax
deduction at source
Condition for no deduction on income or sum
A   B   C
( iii )   the Life Insurance Corporation of
India   established   under   the   Life
Insurance   Corporation   Act,   1956
(31 of 1956); or
( iv )   the Unit Trust of India; or
( v )   any company or co-operative society
carrying on the business of insurance;
or
( vi )   such other institution, association or
body or class of institutions, associ -
ations or bodies which the Central
Government may, for reasons to be
recorded in writing, notified in this
behalf before the 1st April, 2020;
( b )   interest income credited or paid—
( i )   by a co-operative society other than
a co-operative bank, to a member
thereof; or
( ii )   by a co-operative society to any other
co-operative society; or
( iii )   in respect of deposits with a primary
agricultural credit society or a primary
credit society or a co-operative land
mortgage bank or a co-operative land
development bank; or
( iv )   in respect of deposits (other than time
deposits made on or after the 1st July,
1995) with a co-operative society,
other than a co-operative society or
bank referred to in sub-clause ( iii ),
engaged in the business of banking,
except when,—
( A )   where the total sales, gross receipts or
turnover of the co-operative society
exceed fifty crore rupees during the
tax year immediately preceding the tax
year in which such interest is credited
or paid; and
( B )   the amount or aggregate of amounts
of interest credited or paid exceeds the
threshold limit mentioned in section
393(1) (Table: Sl. No. 5( ii )D);