Circular No. 270

1749. Instructions for deduction of tax at source from winnings from lottery or crossword puzzle during financial year 1980-81 at the rates specified in Part II of First Schedule to Finance Act, 1980

What this is

Circular No. 270 was issued by the Central Board of Direct Taxes on 26 May 1980. Its subject is 1749. Instructions for deduction of tax at source from winnings from lottery or crossword puzzle during financial year 1980-81 at the rates specified in Part II of First Schedule to Finance Act, 1980.

What it does

Records that the Finance Act, 1980 kept the deduction rates on winnings from lotteries and crossword puzzles for the financial year 1980-81 the same as those in force for 1979-80, and asks that instructions be issued to all concerned under the control of the State Government to continue deducting at the rates in Part II of the First Schedule to the Finance Act, 1979. It follows Circular No. 257, dated 4-6-1979, which had carried the rates for 1979-80.

Why it was issued

The annual instruction on these deduction rates; this year the Board had only to record that the rates were unchanged.

Who it reaches

State Governments and their lottery departments
Lottery agents and crossword puzzle organisers paying prizes
Prize winners bearing deduction at source

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

1749. Instructions for deduction of tax at source from winnings from lottery or crossword puzzle during financial year 1980-81 at the rates specified in Part II of First Schedule to Finance Act, 1980
1. I am directed to invite a reference to this Department’s Circular No. 257 [F. No. 275/36/79-IT(B)], dated 4-6-1979, on the subject of deduction of income-tax from winnings from lottery or crossword puzzle payable during the year 1979-80.
2. The Finance Act, 1980 prescribes the same rates of tax from winnings from lottery or crossword puzzle during financial year 1980-81 as were in force during the financial year 1979-80. Necessary instructions for continuing deduction of tax at source from "winnings from lottery or crossword puzzle" at the same rates as are given in Part II of the First Schedule to the Finance Act, 1979 may please be issued to all concerned under the control of the State Government.
Circular : No. 270 [F. No. 275/17/80-IT(B)], dated 26-5-1980.

What to watch

The rates it carries forward speak only for the financial year 1980-81.
It states no figures of its own; the rates are those in Part II of the First Schedule to the Finance Act, 1979, communicated by Circular No. 257, dated 4-6-1979.
It is an instruction to be passed down within the State Government machinery, not a substantive change in the law.

Where you meet it

In a TDS default proceeding against a State lottery department or agent for the financial year 1980-81.

← Circular No. 271 · Circular No. 269 →

A circular binds the department, not you and not a court. The Board issues a circular to its own officers. An assessee may hold the department to a circular that helps him; the department cannot hold an assessee to one that hurts him, and the Tribunal and the courts decide the law for themselves.

Source: the Income Tax Department’s own published text — its page for this instrument.