Section 194BB: TDS on winnings from horse races
Section 194BB of the Income-tax Act, 1961 covers TDS on winnings from horse races. From 1 April 2026 the same deduction sits in Section 393(3), Table Sl. No. 3, Income-tax Act, 2025. The rate, threshold and conditions below were read from incometaxindia.gov.in on 13 October 2026.
Section 194BB at a glance
| Nature of payment | Winnings from horse races |
|---|---|
| Who deducts | A bookmaker, or a person holding a Government licence for horse racing or for arranging wagering or betting on horse races |
| Threshold | Rs 10,000 in a single transaction |
| Income-tax Act, 2025 | Section 393(3), Table Sl. No. 3, Income-tax Act, 2025 |
| Payee without PAN | Highest of the rate below, the rates in force, or 20% |
TDS rate
| Payee | Rate |
|---|---|
| Resident person other than a company | 30% |
| Domestic company | 30% |
Rates exclude surcharge and health and education cess.
Conditions and exceptions
- Rates from Part II of the First Schedule to the Finance Act, 2026.
Which Act applies to your payment
The 1961 Act governs a payment if it was credited or paid on or before 31 March 2026, whichever happened first. If both happen on or after 1 April 2026, the 2025 Act applies.
Source and verification
Income Tax Department: Section 393(3), Table Sl. No. 3, Income-tax Act, 2025 →
Last verified on 13 October 2026. Finance Acts change TDS rates and thresholds; check the source before you deduct. This is general information, not advice for your situation.
Related
Frequently asked questions
What is the TDS rate under section 194BB?
30% for resident person other than a company; 30% for domestic company. Rates exclude surcharge and cess.
What is the threshold for TDS under section 194BB?
Rs 10,000 in a single transaction. Below this, no tax is deducted.
What is section 194BB called under the new Income-tax Act?
From 1 April 2026 it is Section 393(3), Table Sl. No. 3, Income-tax Act, 2025. The e-filing portal's TDS FAQ says the rates and thresholds were carried over; the section number is what changed.
What if the payee has no PAN?
Section 397 of the 2025 Act requires deduction at the highest of the rate above, the rates in force, or 20%.
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