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.
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%. |
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.
Disclaimer: This guide is general information based on the law and notifications in force when it was last updated. It is not professional advice for your case — rates, thresholds and due dates change, so check the current position or speak to our CA team before you act on it.