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Updated On : June 26, 2025

Complete Guide to TDS on Winnings from Horse Races – Section 194BB

Section 194BB of the Income Tax Act mandates the deduction of Tax Deducted at Source (TDS) on income earned from horse race winnings. It applies to individuals who win any amount by betting or wagering in horse races conducted in India. This provision ensures that such income is taxed at the source itself. Learn more about general TDS rules in our TDS India Guide.

Applicability of Section 194BB

TDS under Section 194BB applies when winnings from horse races exceed ₹10,000. It is applicable to any income earned through betting, gambling, or wagering in horse races. To know what qualifies as Income from Other Sources, visit our dedicated guide.

TDS Rate under Section 194BB

The applicable TDS rate is 30% on the entire amount of winnings without any deductions for expenses or allowances. Understand the implications of fixed rate TDS by comparing with TDS on Lottery Winnings – Section 194B.

Time of Deduction

TDS must be deducted at the time of payment of such income to the winner, whether in cash or kind.

Example

If a person wins ₹1,00,000 in a horse race, the payer must deduct ₹30,000 (30%) as TDS and pay ₹70,000 to the winner. This income should be reflected in Form 16 or 26AS for verification and filing.

Who is Liable to Deduct TDS?

The person responsible for paying such winnings, like the race club or bookmaker, must deduct TDS and deposit it with the government. More on responsible parties can be found in TDS on Salary – Section 192.

PAN Requirement

The winner must provide their PAN to avoid a higher TDS deduction under Section 206AA, which may result in a 20% or higher rate if PAN is not furnished. Know more about PAN requirements in our e-Filing Walkthrough.

No Exemptions or Deductions

No exemptions under Section 10 or deductions under Chapter VI-A (like Section 80C to 80U) are allowed against this income. It is taxed under "Income from Other Sources."

Reporting in ITR

The income must be reported in the Income Tax Return under the head Income from Other Sources, and the TDS credit can be claimed via Form 26AS. For accurate filing, refer to our ITR Forms Guide.

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Frequently Asked Questions – Section 194BB (TDS on Horse Race Winnings)

What is Section 194BB of the Income Tax Act?

Section 194BB requires TDS deduction on winnings from horse races if they exceed ₹10,000 in a financial year.

What is the TDS rate under Section 194BB?

The TDS rate under Section 194BB is 30% on the entire winnings amount without any exemption or deduction.

Is there any minimum threshold for TDS under Section 194BB?

Yes, TDS applies only if the winnings from a horse race exceed ₹10,000.

Who deducts TDS under Section 194BB?

The race club, betting house, or intermediary paying the winnings is responsible for deducting TDS.

What if I don’t provide PAN to the payer?

If PAN is not provided, a higher TDS rate of 20% or more may be applied under Section 206AA.

Can I claim a refund of TDS deducted on horse race winnings?

Yes, you can claim a refund while filing your income tax return if your total tax liability is less.

Where should I report horse race winnings in my ITR?

Such income must be reported under the head "Income from Other Sources" in your ITR.

Are there any deductions allowed against winnings?

No deductions or exemptions are allowed. The entire amount is taxable at a flat rate.

How is TDS calculated on horse race winnings?

TDS is calculated at 30% on the gross winnings amount if it exceeds ₹10,000.

Is TDS applicable if the winnings are received in kind?

Yes, the payer must ensure TDS is paid before awarding any non-cash prize.

Can I set off losses against horse race winnings?

No, such income is taxed on gross basis. Set-off of losses is not permitted.

Do I receive a TDS certificate for such deductions?

Yes, the payer is required to issue Form 16A reflecting the deducted TDS.

Are winnings from international races also covered?

No, Section 194BB applies only to winnings from horse races conducted within India.

What if multiple winnings during the year stay below ₹10,000 each?

TDS will not be applicable if no single winning exceeds ₹10,000, even if cumulative winnings are higher.

Where can I verify TDS deduction for horse race winnings?

You can verify TDS deducted in Form 26AS or through the Annual Information Statement (AIS) on the income tax portal.

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