Section 194B of the Income Tax Act generally for TDS to be paid on crossword puzzles, winnings from lotteries, card games, etc
Whereas Section 194BB of the Income Tax Act pertains to TDS to be deducted on Income from horse racing.
TDS needs to be deducted in both cases where the total income exceeds INR 10,000 per year.
TDS at the rate of 30% needs to be deducted from the total income for both sections 194B and 194BB.
Considering the increase in online gaming, Budget 2023 has introduced a new section called 115BBJ to tax income on online games at the rate of 30%. The income to be considered in online gaming has been described in the section. So, from 1st April 2023, this section shall be applicable.
As separate sections were introduced from online gaming accordingly section 194B and section 115BB removed the words Online gaming from the definition.