In the Finance Act 1978,a new section was inserted after Section 194 B,Which aims Tax deduction from winning from Horse race.
Any person, who is a bookmaker or holding a license of horse racing in any race course or for arranging for wagering or betting in any race course and is paying to any person by way of winning from any horse race shall responsible for deducting tax @ 30%.
The exemption limit is Increased to 10000 from 5000 from 1 st June 2016.If Payment made less than 10000 ,tax shall not be deducted.
FinanceAct 2016 Update on Section 194 BB
In section 194BB of the Income-tax Act, for the words “five thousand rupees”, the words “ten thousand rupees” shall be substituted with effect from the 1st day of June, 2016.
The deduction shall be increased by a surcharge for purposes of the Union, calculated in cases wherever prescribed, in the manner provided therein.