Section 194BB — the law in short
What the courts have decided on section 194BB, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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Statutory position — s.194BB: winnings from a horse race, and who the deductor is
CBDT Circulars & InstructionsCuts both ways
I collected on a horse race and the club deducted tax. Who is obliged to deduct under s.194BB, and what is the threshold now?
Section 194BB puts the duty on a defined class of payer only: 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. Such a person paying any income by way of winnings from any horse race must deduct at the rates in force where the amount, in respect of a single transaction, exceeds ten thousand rupees — that per-transaction wording having replaced 'or aggregate of amounts', and the words 'during the financial year' having been omitted, by Act No. 7 of 2025 with effect from 1 April 2025.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.
