Income-tax Act, 1961Section 194B
- 30% TDS on winnings above ₹10,000 per transaction
- Online games: separate section 194BA on net winnings
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 194B
TDSSection 194B → Section 393
TDS on lottery, crossword, card game and gambling winnings
Section 194B of the old Income-tax Act, 1961 · new section 393 under the Income-tax Act, 2025
New reference Section 393(3), Table Sl. No. 1 (194BA → Sl. No. 2)
Income-tax Act, 2025Section 393(3), Table Sl. No. 1 (194BA → Sl. No. 2)
- Section 393(3), Table Sl. No. 1: rates in force (30%)
- Threshold ₹10,000 per single transaction
- Online game winnings: Sl. No. 2, on net winnings
- Winnings in kind: payer must ensure tax is paid before release
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Consolidated into section 393; threshold and rate unchanged.
Practice notes
- Winnings are taxed at the special rate without any deduction or basic exemption.
Frequently asked
What is the TDS on lottery winnings under the new Income Tax Act 2025?
30% on winnings above ₹10,000 per transaction, under section 393(3), Table Sl. No. 1.
What is section 194B called in the new Income-tax Act, 2025?
Section 194B of the Income-tax Act, 1961 corresponds to Section 393(3), Table Sl. No. 1 (194BA → Sl. No. 2) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 194B under the new Income Tax Act?
Consolidated into section 393; threshold and rate unchanged.
Is section 194B still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 194B of the 1961 Act. Section 393(3), Table Sl. No. 1 (194BA → Sl. No. 2) of the 2025 Act applies from tax year 2026-27.