# Section 194BB - TDS on Winnings from Horse Race

## Who Deducts (Deductor)

A Book Maker or any person holding a licence for:

Horse racing, or
Arranging for wagering / betting in any race course

## On What (Nature of Payment)

Winnings from horse race paid to any person.

## Threshold

TDS applies when the amount in respect of a single transaction exceeds ₹ 10,000.

> Note: The threshold is per single transaction, NOT aggregate during the year.

## Rate of TDS

30% (flat rate)

## When to Deduct

At the time of payment.

## Quick Recall Box

Particular	Details
Threshold	> ₹ 10,000 per single transaction
Payer	Book maker / licence holder
Payee	Any person
Rate	30%
Timing	At time of payment

Worked example

### Example 1

Example: Mr. X wins ₹ 25,000 on a single bet at Mahalaxmi Race Course (operated by a licensed book maker).

Solution: Since the single transaction exceeds ₹ 10,000, TDS @ 30% is deductible.

TDS = 30% × ₹ 25,000 = ₹ 7,500

Net payment to Mr. X = ₹ 25,000 - ₹ 7,500 = ₹ 17,500.

### Example 2

Example: Mr. Y wins on three separate races at the same race course: ₹ 8,000, ₹ 9,500 and ₹ 7,000.

Solution: No TDS u/s 194BB because each single transaction is ≤ ₹ 10,000. Aggregation does NOT apply under this section.

⚠️ Common exam mistakes

Aggregating multiple winnings during the year — section 194BB threshold is per single transaction, not aggregate
Applying basic exemption limit — 30% applies on the full winning amount once threshold is crossed, no deductions/exemptions are allowed
Confusing 194BB (horse race) with 194B (lottery/crossword/gambling)

Bare-Act text Section 194BB · Income-tax Act, 1961 · click to expand

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, who is responsible for paying to any person any income by way of winnings from any horse race exceeding ten thousand rupees shall, at the time of payment thereof, deduct income-tax thereon at the rates in force.

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