FOR PAYMENTS TO ANY PERSON (RESIDENT OR NON-RESIDENT, BOTH)
(Section – 393, Income-Tax Act, 2025)
[With effect from 1st April, 2026]
| Sl. No. | Nature of income or sum | Payer | Rate | ||||||||
| Threshold limit | |||||||||||
| A | B | C | D | ||||||||
| 1. |
Any income by way of winnings (other than winnings from online games as referred to in serial number 2) from—
|
Any person. | Rate: Rates in force.(See Note no. 5)
_____ Threshold limit: ₹ 10,000 in case of a single transaction. |
||||||||
| 2. |
Any income by way of winnings from online game. |
Any person. | Rate: Rates in force.(See Note no. 5)
_____ Threshold limit: As per Note 1. |
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| 3. |
Any income by way of winnings from any horse race. |
Any person, being a bookmaker or a person to whom a license 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.(See Note no. 5)
_____ Threshold limit: ₹ 10,000 in case of a single transaction. |
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| 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. |
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| 5. |
Any sum, paid in cash, from one or more accounts maintained by any person (herein referred as recipient). |
Any person, being, —
|
Rate: 2%
_____ Threshold limit: (a) three crore rupees in case of recipient being, a co-operative society; or (b) one crore rupees in case of recipient being person other than a co-operative society. |
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| 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. |
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| 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. |
For payments to any person
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:
(5) Rate in force u/s 2(90) of the Income Tax Act, 2025: means rate as per the relevant Finance Act.
