# TDS on Winnings – Sections 194B, 194BA & 194BB
## 1. Section 194B – Winnings from Lottery, Crossword Puzzles, Card Games, Betting, etc.
| Parameter | Details |
|---|---|
| Payer | Any person responsible for paying income by way of such winnings |
| Payee | Any person (Resident or Non-Resident) |
| Threshold | Amount in respect of a single transaction > ₹10,000 |
| Rate | 30% (plus SC/HEC if payee is NR) |
| Time of deduction | At the time of payment |
### Key Points
- The ₹10,000 threshold is applied per transaction, NOT aggregate.
- If winning is wholly/partly in kind, payer must ensure tax has been paid before releasing the prize.
## 2. Section 194BA – Winnings from Online Games
| Parameter | Details |
|---|---|
| Payer | Any person responsible for paying income by way of winnings from any online game |
| Payee | Any person |
| Threshold | No threshold — TDS on any amount |
| Rate | 30% on net winnings computed in prescribed manner |
| Time | (a) End of F.Y. (on year-end net winnings in user account); (b) At time of withdrawal during the F.Y. |
### Key Points
- 'Net winnings' = withdrawals + closing balance – (deposits + opening balance), computed as prescribed.
- Tax is deducted at the time of every withdrawal during the F.Y., and on remaining balance at year-end.
## 3. Section 194BB – Winnings from Horse Races
| Parameter | Details |
|---|---|
| Payer | Book-maker or person holding licence for horse-racing / arranging wagering or betting in any race course |
| Payee | Any person |
| Threshold | Single transaction > ₹10,000 |
| Rate | 30% |
| Time | At the time of payment |
## Comparative Snapshot
```
| 194B | 194BA | 194BB
Nature | Lottery/Games | Online Games | Horse Race
Threshold | >₹10,000/txn | NIL | >₹10,000/txn
Rate | 30% | 30% on NET winnings| 30%
Timing | Payment | Withdrawal/Yr-end | Payment
```
## Surcharge & HEC
- If payee is Resident: flat 30%, no SC/HEC.
- If payee is Non-Resident: 30% + applicable SC + 4% HEC.