Section 194G — the law in short
What the courts have decided on section 194G, 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.194G: commission on the sale of lottery tickets, and the rate and threshold as they now stand
CBDT Circulars & InstructionsCuts both ways
The lottery distributor deducted ten per cent from my agency commission. What is the correct rate and threshold under s.194G, and when did they change?
Not ten per cent, unless the payment is an old one. On the departmental page stamped Year 2025 the rate is TWO per cent and the threshold is TWENTY THOUSAND rupees: footnote 85 records that 'two' was substituted for 'Five' by Act No. 15 of 2024 with effect from 1 October 2024, and footnote 84 that 'twenty' was substituted for 'fifteen' by Act No. 7 of 2025 with effect from 1 April 2025, the earlier 'fifteen' itself having been substituted for 'one' by Act No. 28 of 2016 with effect from 1 June 2016. The section reaches any person paying, to a person who is or has been stocking, distributing, purchasing or selling lottery tickets, any income by way of commission, remuneration or prize by whatever name called on such tickets.
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Statutory position — s.194D: insurance commission, the threshold, and why the section states no rate
CBDT Circulars & InstructionsCuts both waysValidity unconfirmed
The insurer deducted tax on my agency commission even though it was under twenty thousand rupees for the year. What is the s.194D threshold, and which year does my case fall in?
Section 194D obliges any person paying a resident income by way of remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business — including business relating to the continuance, renewal or revival of policies of insurance — to deduct at the rates in force, at credit or payment, whichever is earlier. The second proviso stops deduction where the amount of such income, or the aggregate of the amounts credited or paid or LIKELY to be credited or paid during the financial year to the payee, does not exceed twenty thousand rupees on the departmental page stamped Year 2026; the pages stamped Year 2020 and Year 2023 print fifteen thousand rupees, and the pages stamped Year 2012 and Year 2014 print twenty thousand rupees, substituted for five thousand by the Finance Act, 2010 with effect from 1 July 2010.
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.