Microlesson · 5-min read

Section 194G - TDS on Commission on Sale of Lottery Tickets

# Section 194G - TDS on Commission on Sale of Lottery Tickets

## Who Deducts

Any person responsible for paying any income by way of commission, remuneration or prize (by whatever name called) on lottery tickets.

## Payee

Any person engaged in stocking, distributing, purchasing or selling lottery tickets.

## Threshold

> ₹ 20,000 in a F.Y.

## Rate of TDS

## When to Deduct

At the time of credit OR payment, whichever is earlier.

Worked example

### Example 1

Example: State Lottery Dept pays ₹ 60,000 to a lottery ticket distributor as commission.

Solution: Exceeds ₹ 20,000 → TDS @ 2%.

TDS = 2% × ₹ 60,000 = ₹ 1,200.

⚠️ Common exam mistakes

Confusing TDS on lottery WINNINGS (Section 194B - 30%) with TDS on commission to lottery sellers (194G - 2%)
Applying threshold of ₹ 15,000 instead of ₹ 20,000 for 194G

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

Any person who is responsible for paying any income by way of commission, remuneration or prize (by whatever name called) on lottery tickets shall, at the time of credit or payment, whichever is earlier, deduct income-tax thereon.

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Section 194DA - TDS on Sum und

Section 194H - TDS on Commissi

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