# Sec 194B / 194BB / 194BA — TDS on Winnings

## Section 194B — Winnings from Lotteries, Crossword Puzzles, Card Games, etc.

Deductor: Any person paying the winning.
Threshold: Winnings > ₹10,000 (per transaction).
Rate: 30% (flat).
Deducted at the time of payment.

## Section 194BB — Winnings from Horse Races

Threshold: Winnings > ₹10,000.
Rate: 30%.

## Section 194BA — Net Winnings from Online Games

No threshold — TDS on every rupee of net winnings.
However, if net winnings during a month ≤ ₹100 per month, no TDS need be deducted at that point.
Rate: 30% of net winnings.
'Net winnings' = Withdrawal during the year − net deposits − opening balance, as per Rules.

## Surcharge — NR payee

If payee is a non-resident, surcharge and HEC apply.

Worked example

### Example 1

Example (194B): Mr. X wins ₹50,000 from a TV game show. TDS = 30% of ₹50,000 = ₹15,000. Net paid: ₹35,000.

### Example 2

Example (194BB): Horse race win of ₹9,000 — no TDS (below ₹10,000).

### Example 3

Example (194BA): Online gaming app shows net winnings of ₹500 in a month. TDS @ 30% = ₹150. (No exemption since net winnings exceed ₹100 p.m. threshold.)

⚠️ Common exam mistakes

Applying any deduction / allowance — 30% is on gross winnings.
Treating ₹10,000 as an annual threshold under 194B (it is per transaction).
Applying a threshold under 194BA — there is no annual threshold; only a small monthly de-minimis relief of ₹100.

Reference: 194B / 194BB / 194BA

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Sections 194B, 194BB and 194BA — Winnings

Worked example

⚠️ Common exam mistakes