Section 194B TDS explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 194B covers TDS on Winnings from lottery, crossword and games. This guide explains its rate, threshold and applicability.
Section 194B — rate, threshold & applicability
| Section | 194B |
| Nature of payment | Winnings from lottery, crossword and games |
| TDS rate | 30% |
| Threshold limit | Winnings over ₹10,000 |
| Who deducts | The payer of the winnings |
| Rate if PAN not furnished | Generally 20% (or the applicable higher rate) |
When Section 194B applies
- It applies to Winnings from lottery, crossword and games
- TDS must be deducted once the payment crosses Winnings over ₹10,000
- The deductor is: The payer of the winnings
- A higher rate applies if PAN is not furnished by the payee
Example
A game show paying ₹1,00,000 winnings deducts 30% TDS.
Points to note
- TDS is deducted at the time of credit or payment, whichever is earlier
- A higher rate applies if the payee has not furnished a PAN
- Non-filers may attract a higher rate under Sections 206AB/206CCA
- Always verify the latest rate, as thresholds are periodically revised
TDS compliance essentials
Whichever section applies, the core TDS process is the same:
- Obtain a TAN before deducting any TDS
- Deduct at the correct rate at the time of credit or payment, whichever is earlier
- Deposit the TDS by the 7th of the next month using the right challan
- File quarterly TDS returns (24Q/26Q/27Q) and issue Form 16/16A to the payee
- Verify deductions in Form 26AS/AIS and reconcile before filing
Related Section 194B guides
- How to Deduct TDS under Section 194B
- Section 194B TDS with Example & Due Dates
- Section 194B TDS Rate Chart
TDS compliance under Section 194B, done right
TaxClue handles TDS deduction, deposit and quarterly returns so you never miss a due date or face interest.
Talk to a tax expert →