Income Tax Act, 2025
Section 9: The Explanation omitted by Act 18 of 1992, s. 71 (w.e.f. 11992).
9. The Explanation omitted by Act 18 of 1992, s. 71 (w.e.f. 11992).
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1[194B. Winnings from lottery or crossword puzzle.―The person responsible for paying to any
person any income by way of winnings from any lottery or crossword puzzle 2[or card game and other
game of any sort] in an amount exceeding 3[ten thousand rupees] shall, at the time of payment thereof,
deduct income-tax thereon at the rates in force:
4* * * * *]
5[6[Providedthat] in a case where the winnings are wholly in kind or partly in cash and partly in kind
but the part in cash is not sufficient to meet the liability of deduction of tax in respect of whole of the
winnings, the person responsible for paying shall, before releasing the winnings, ensure that tax has been
paid in respect of the winnings.]
7[194BB. Winnings from horse race.―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 in an amount exceeding 8[ten thousand
rupees] shall, at the time of payment thereof, deduct income-tax thereon at the rates in force.
4* * * * *]
9[194C. Payments to contractors.—(1) Any person responsible for paying any sum to any resident
(hereafter in this section referred to as the contractor) for carrying out any work (including supply of
labour for carrying out any work) in pursuance of a contract between the contractor and a specified person
shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in
cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal
to—
(i) one per cent where the payment is being made or credit is being given to an individual or a
Hindu undivided family;
(ii) two per cent where the payment is being made or credit is being given to a person other than
an individual or a Hindu undivided family,
of such sum as income-tax on income comprised therein.
(2) Where any sum referred to in sub-section (1) is credited to any account, whether called “Suspense
account” or by any other name, in the books of account of the person liable to pay such income, such
crediting shall be deemed to be credit of such income to the account of the payee and the provisions of
this section shall apply accordingly.
(3) Where any sum is paid or credited for carrying out any work mentioned in sub-clause (e) of clause
(iv) of the Explanation, tax shall be deducted at source—
(i) on the invoice value excluding the value of material, if such value is mentioned separately in
the invoice; or
(ii) on the whole of the invoice value, if the value of material is not mentioned separately in the
invoice.
Any person responsible for paying any sum to any resident
(hereafter in this section referred to as the contractor) for carrying out any work (including supply of
labour for carrying out any work) in pursuance of a contract between the contractor and a specified person
shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in
cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal
to—
one per cent where the payment is being made or credit is being given to an individual or a
Hindu undivided family;
two per cent where the payment is being made or credit is being given to a person other than
an individual or a Hindu undivided family,
of such sum as income-tax on income comprised therein.
Where any sum referred to in sub-section
is credited to any account, whether called “Suspense
account” or by any other name, in the books of account of the person liable to pay such income, such
crediting shall be deemed to be credit of such income to the account of the payee and the provisions of
this section shall apply accordingly.
Where any sum is paid or credited for carrying out any work mentioned in sub-clause
of clause
of the Explanation, tax shall be deducted at source—
on the invoice value excluding the value of material, if such value is mentioned separately in
the invoice; or
on the whole of the invoice value, if the value of material is not mentioned separately in the
invoice.