The 60-second version
Section 194G requires 5% TDS on commission paid to lottery ticket selling agents — distributor deducts before remitting commission.
194G is agent commission — 194B is winner payout
Section 194G applies when commission is paid to a lottery ticket selling agent — 5% TDS on gross commission.
Distinct from Section 194B 30% TDS on winner's prize and Section 194H general commission.
Winner lane: Section 194B guide.
Commission TDS matrix
| Section | Rate | Payment |
|---|---|---|
| 194G | 5% | Lottery ticket agent commission |
| 194H | 5% | General commission |
| 194B | 30% | Lottery winnings |
| 194J | 10% | Professional fees |
194G sequence
Agent agreement
Distributor contract.
Commission due
Sales period close.
5% TDS
Distributor deducts.
26AS
Verify credit.
ITR
Declare commission income.
Flow
194G kit
- Agent contract.
- Commission stmt.
- TDS cert.
- 26AS.
- ITR ACK.
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vs 194H
194G only lottery ticket agents — general sales commission uses 194H.
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Retail shop lottery?
If authorised agent — 194G on commission from distributor.
vs 194H?
194G lottery-specific; 194H general commission above ₹15k.
GST?
Agency services may need GST registration if turnover crosses threshold.
TAN needed?
Distributor needs TAN — agent receives 16A.
Online lottery?
Verify if distributor deducts 194G on digital agent commission.
Business income?
Declare commission net of expenses in ITR-3/4.
Your tax year is already running.
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