The Section 393(3) Table, Sl. No. 1 to 7
Under section 393(3)(a), tax is deducted on the entire amount of the income or sum where the amount or aggregate of amounts exceeds the threshold limit in column D, or on net winnings as per Note 1 for online games. It is deducted at the time of payment, or as the Table specifies.
| Sl. No. | Nature of payment | Payer | Rate | Threshold |
|---|---|---|---|---|
| 1 | Winnings (other than winnings from online games referred to in Sl. No. 2) from any lottery, crossword puzzle, card game and other game of any sort, or gambling or betting of any form or nature whatsoever | Any person | Rates in force | ₹10,000 in case of a single transaction |
| 2 | Winnings from online game | Any person | Rates in force | As per Note 1: tax is deducted on net winnings |
| 3 | Winnings from any horse race | Any person, being a bookmaker or a person licensed by the Government for horse racing in any race course or for arranging for wagering or betting in any race course | Rates in force | ₹10,000 in case of a single transaction |
| 4 | Income by way of commission, remuneration or prize (by whatever name called) on lottery tickets, credited or paid to a person who is or has been stocking, distributing, purchasing or selling such tickets | Any person | 2% | ₹20,000 |
| 5(a) | Any sum paid in cash from one or more accounts maintained by any person (the recipient), where the recipient is a co-operative society | A banking company, a co-operative society engaged in carrying on the business of banking, or a post office | 2% | Three crore rupees |
| 5(b) | The same, where the recipient is a person other than a co-operative society | A banking company, a co-operative society engaged in carrying on the business of banking, or a post office | 2% | One crore rupees |
| 6 | Any amount referred to in section 80CCA(2)(a) of the Income-tax Act, 1961 (43 of 1961) | Any person | 10% | ₹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 | 10% | ₹20,000 |
Note 1 (Sl. No. 2): tax is deducted on net winnings in the user account at the end of the tax year and, where there is a withdrawal during the year, at the time of the withdrawal on the net winnings comprised in it and on the remaining net winnings at the end of the tax year. Note 2 (Sl. No. 1 and 2): where winnings are wholly in kind, or the cash part is not sufficient to meet the tax, the payer ensures that the tax has been paid before releasing the winnings. Note 3 (Sl. No. 4): tax is deducted at the time of credit or payment, whichever is earlier.
Work Out the TDS on Winnings, Cash Withdrawals and Partner Payments
Pick the payment, the payee and the amount. Where the threshold is on the year’s aggregate, enter the aggregate.
Winnings from online games under Sl. No. 2 are on net winnings computed under the rules and are not worked out. Lower deduction certificates under section 395 are not applied.
Rates in Force for Winnings, Tax Year 2026-27
Sl. No. 1, 2 and 3 say "rates in force". Section 2(90) of the Act defines this as the rate specified in the Finance Act of the relevant year. Part II of the First Schedule to the Finance Act, 2026 gives the same rate for every class of payee.
| Income | Resident, not a company | Non-resident, not a company | Domestic company | Other company |
|---|---|---|---|---|
| Winnings from lotteries, crossword puzzles, card games and other games of any sort (other than winnings from online games) | 30% | 30% | 30% | 30% |
| Winnings from horse races | 30% | 30% | 30% | 30% |
| Net winnings from online games | 30% | 30% | 30% | 30% |
Part II items 1(a)(ii) to (iv), 1(b)(i)(J) to (L), 1(b)(ii)(E) to (G), 2(a)(ii) to (iv) and 2(b)(i) to (iii).
Exceptions, Surcharge and Cess
| Provision | Entry | Rule |
|---|---|---|
| ITA 2025, s. 393(4), Sl. No. 18 | Sl. No. 5 | No deduction on cash paid to the Government; to a banking company, a co-operative society engaged in the business of banking or a post office; to a business correspondent of a banking company or such co-operative society under Reserve Bank of India guidelines; or to a white label automated teller machine operator of a banking company or such co-operative society authorised by the Reserve Bank of India. |
| ITA 2025, s. 393(4), Sl. No. 19 | Sl. No. 6 | No deduction on payment made to heirs of an assessee. |
| FA 2026, s. 3(17)(i) | All entries | Health and Education Cess is not added where the income subjected to deduction is paid to a domestic company or any other person who is resident in India. |
| FA 2026, s. 3(7), Sl. No. 2 to 8 | Sl. No. 4 to 7 | Surcharge is added only for non-resident persons and companies other than domestic companies, at the rates in that Table. The cess of 4% under section 3(16) then applies. |
| FA 2026, s. 3(7), Sl. No. 1 and First Schedule Part II | Sl. No. 1 to 3 | Surcharge, where prescribed, is calculated as provided in Part II of the First Schedule. The surcharge Table in Part II names only non-resident persons and companies other than domestic companies. |
| ITA 2025, s. 397(2)(b)(i) | No valid PAN | Tax is deducted at the higher of the rate in the provision, the rates in force, or 20%. |
Late Fee and Penalty
Simple interest at 1% for every month or part of a month from the date tax was deductible to the date it is deducted, and 1.5% for every month or part of a month from the date of deduction to the date it is paid. ITA 2025 · s. 398(3)
₹200 for every day the statement under section 397(3)(b) is late, not exceeding the tax deductible. ITA 2025 · s. 427(1) and (2)
₹10,000 to ₹1,00,000. Not levied for delay if the tax, fee and interest were paid and the statement is filed within one month of the due date. ITA 2025 · s. 461
Failing to deduct, or to pay or ensure payment of the tax on winnings in kind as Note 2 requires, can attract a penalty equal to the tax. ITA 2025 · s. 448
Includes tax on online game winnings: simple imprisonment up to two years or fine or both where the tax exceeds fifty lakh rupees, up to six months above ten lakh rupees, fine otherwise, unless paid by the due date of the statement. ITA 2025 · s. 476, as substituted by FA 2026
What You Pay in Common Cases
Lottery prize of ₹1,00,000 to a resident
Firm pays a partner salary and interest of ₹3,00,000 in the year
Card game winnings of ₹50,000 to a non-resident
Commission of ₹50,000 to a lottery ticket agent, no PAN
How to Apply and Pay
- 1Deduct at paymentAt the time of payment (s. 393(3)(c)); for lottery ticket commission at credit or payment, whichever is earlier (Note 3).
- 2Winnings in kindMake sure the tax has been paid before releasing the prize (Note 2).
- 3Deposit by the 7thWithin seven days from the end of the month of deduction, by 30 April for March (rule 218(2)).
- 4File the quarterly statementForm 140 for resident payees, Form 144 for non-residents, by 31 July, 31 October, 31 January and 31 May (rule 219(1) and (4)).
- 5Issue Form 131Within fifteen days from the due date of the statement (rule 215(1), Table Sl. No. 2).
Documents to file with it
- Valid Permanent Account Number of the payee; without it, the higher of the Table rate and 20% (s. 397(2)(b)(i))
- Tax deduction and collection account number of the payer, quoted in challans, statements and certificates (s. 397(1)(b))
- For prizes in kind, proof that the tax has been paid before release (Note 2 to the section 393(3) Table)
How to Use This Chart
- These seven entries apply to every payee, so the resident and non-resident Tables are not consulted for them.
- For Sl. No. 1 and 3 the threshold is tested for a single transaction. For online games under Sl. No. 2 there is no monetary threshold in the Table: tax is on net winnings.
- For cash withdrawals, check first whether the recipient is a co-operative society: the threshold is three crore rupees for it and one crore rupees for everyone else.
- The manner of computing net winnings from online games is prescribed by the Income-tax Rules, 2026 and is not shown.
- The surcharge rates for non-resident payees are in the chart for payments to non-residents, not repeated here.
- Lower or nil deduction certificates under section 395 are not shown.
- The charge of tax on winnings in the hands of the winner (the rate at which the income is finally taxed) is not part of this chart.
- Part II of the First Schedule names lotteries, puzzles, card games and other games of any sort, horse races and online games. It has no separate line for gambling or betting, which Sl. No. 1 also covers.
Official documents behind this page
- Income-tax Act, 2025 (30 of 2025), as enacted, Gazette of India ExtraordinarySection 393(3), Table "For payments to any person", Sl. No. 1 to 7 and Notes 1 to 3; section 393(4), Table, Sl. No. 18 and 19; section 397(2)(b); section 2(90).
- Finance Act, 2026 (4 of 2026), Gazette of India Extraordinary, 30 March 2026First Schedule, Part II (rates for winnings in items 1 and 2, and the surcharge Table); section 3(7), 3(16) and 3(17); section 84 (amendment of section 393, which does not touch the sub-section (3) Table).
- Income-tax Act, 2025 as amended by the Finance Act, 2026 (consolidated copy)Used as a second reading of the section 393(3) Table. It carries no amendment footnote against that Table. Also read: section 393(3)(a) to (c); section 396; section 397(1)(b) and (2)(b); section 398(3); section 427; sections 448 and 461; section 476(1) as substituted by the Finance Act, 2026.
- Income-tax Rules, 2026 (notified 20 March 2026)Rule 215(1) Table Sl. No. 2 (Form 131), rule 218(2) (time of deposit), rule 219(1) Table Sl. No. 2 and 3 and rule 219(4) (Forms 144 and 140 and the quarterly due dates).
Disclaimer: This chart reproduces fees and rates from the official documents listed above, as read on 2 October 2026. It is general information, not professional advice for your case. Fees, rates and slabs are changed by notification, and the amount the authority’s portal or challan asks for on the day you pay is the one that applies. The calculator only adds up the figures on this page; it does not know your facts or any later change. TaxClue is not responsible for a decision taken on this page alone. Check the current notification on the official website before you pay or file.