The 60-second version
Section 194BB requires 30% TDS on horse race winnings paid to any person — returning NRIs operating race club or bookmaker licence must deduct and file Form 26Q.
194BB is flat 30% — no threshold and no TAN exemption for licence holders
Section 194BB applies when you pay winnings from horse races — 30% TDS at source on gross winnings.
Returning NRIs holding state race club or bookmaker licence must deduct before payout and deposit via challan 281.
Lottery lane: Section 194B guide for lottery and crossword winnings at 30%.
194BB matrix
| Payer | Rate | Form |
|---|---|---|
| Race club | 30% | 26Q |
| Bookmaker | 30% | 26Q |
| Commission agent | 194H separate | 26Q |
| Winner ITR | Schedule OS | ITR-2 |
Compliance
TAN
Apply if new payer.
Deduct 30%
On gross winnings.
Challan 281
Deposit by 7th.
Form 26Q
Quarterly.
Form 16A
Issue to winner.
Flow
194BB kit
- TAN.
- Licence copy.
- Winner PAN.
- 26Q.
- Form 16A.
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Licence state
Horse race licensing is state-specific — TDS obligation applies regardless of state but licence renewal is separate compliance track.
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194BB vs 194B?
194BB is horse race only; 194B covers lottery, crossword, and card games.
Threshold?
No threshold — deduct 30% on any winnings payment.
NRI winner?
Section 195 may apply for non-resident winner — verify with CA.
RNOR payer?
Deduction obligation applies if you hold active licence.
Commission?
Bookmaker commission to agent may trigger Section 194H separately.
Penalty?
Late deposit attracts Section 201(1A) interest and penalty.
Your tax year is already running.
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