Case Law Analysis
|Madras High Court
Section 194G IT Act | Discount on Lottery Tickets Not 'Commission'; No TDS Liability for Dealers: Madras HC Quashes Rs. 2.19 Crore Demand
Madras High Court clarifies that discounts offered on lottery ticket sales do not constitute 'commission' under Section 194G of the Income Tax Act, relieving dealers of TDS obligations. The ruling sets aside a Rs. 2.19 crore tax demand, reinforcing that tax deductions at source apply only to actual payments made to dealers, not mere price reductions.