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TDS Section 194G Commission on sale of lottery tickets

FY 2025-26 · Rate 2% (reduced from 5% by Finance Act 2025)

Section
194G
Rate (with PAN)
2% (reduced from 5% by Finance Act 2025)
Rate (no PAN)
20%

What does this section cover?

TDS on commission, remuneration paid on stocking, distribution, sale of lottery tickets.

Why this section: Commission paid to lottery agents/stockists above ₹20,000 per FY attracts 2% TDS.

Note: Rate cut from 5% to 2% from April 2025.

Key facts

Threshold
₹20,000 per FY (raised from ₹15,000)
Applicable for
FY 2025-26
Who deducts
Lottery distributor / state lottery operator
Paid to
Lottery agent / stockist
Statutory source
Section 194G, Income Tax Act
Compute and file this TDS with CAhelperFree TDS computation, Form 26Q prep, challan generation — Part of KLI.

Common terms accountants use

If your description mentions any of these, Section 194G is likely the right answer. The matcher in this tool is a keyword scorer — not an AI classifier — so cross-check borderline cases against the official CBDT TDS rate chart.

lottery commissionlottery agentlottery stockistticket commission

Related TDS sections

Other sections in the same series or adjacent. Useful when narrowing down between similar payment categories.

Need a different section?

Describe the payment in plain English — “rent of plant”, “senior citizen interest”, “NRI dividend” — and the matcher will surface the right section.

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Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.