Home > Income Tax Act 2025 > Section-194Last Updated: Feb 22nd 2025
Section-194 provides for taxation of earnings from lotteries, cross word puzzles, horse race, card games, online games, income from transfer of virtual digital assets. The said clause further provides for a concessional tax rate on royalty income on patents earned by a resident, income on transfer of carbon credits and profits and gains from insurance business. Learn to understand the section-194 as it is, it's help and useful links to follow.
Here onwards, "Act" refers to "Income Tax Act 2025"
Sl No. | Assessee | Income | Rate of tax | Conditions |
---|---|---|---|---|
A | B | C | D | E |
1 | Any person | Winnings (other than from any online game) from––
| 30% | Nil. |
2 | A person, resident in India and who is a patentee (herein referred to as an eligible assessee). | Royalty in respect of a patent developed and registered in India. | 10% |
|
3 | Any person | Income by way of transfer of carbon credits. | 10% | No deduction in respect of any expenditure or allowance shall be allowed to the assessee under any provision of this Act in computing his income referred to column C. |
4 | Any person. | Any income from the transfer of any virtual digital asset. | 30% |
|
5 | Any person | Any income by way of net winnings from any online game, computed in the manner, as prescribed. | 30% | Nil |
6 | Any person | Any profits and gains from life insurance business. | 12.5% | Nil |
Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.