In respect of the following independent case scenarios, you are required to discuss the provisions related to tax deducted at source for the year…

1. As per section 194G, any person responsible for paying to any person, who is or has been stocking, distributing, purchasing or selling lottery tickets, any income by way of commission, remuneration or prize (by whatever name called) on lottery tickets in an amount exceeding - 15,000 shall deduct income-tax thereon at the rate of 5%. W.e.f. 01st October 2024, the rate of TDS has been reduced from 5% to 2%. Tax is required to be deducted at source @ 5% or 2%, as the case may be even if turnover of the agency does not exceed 1crore for the F.Y. 2023-24. Accordingly, in the present case, tax of 900i.e., @5% of 18,000 is required to be deducted at source on 15.07.2024, since amount of commission exceed - 15,000. Further, tax of 800i.e., @2% of 40,000 is required to be deducted on 15.11.2024. 2. Section 194S requires any person who is responsible for paying to any resident any sum by way of consideration for transfer of a virtual digital asset to deduct tax at source @1% of such sum. The deduction is to be made at the time of credit of consideration to the account of the resident or at the time of payment of such sum by any mode, whichever is earlier. Hence, Smart Switch Pvt. Ltd. is required to deduct tax at source @1% of 4,47,504, being the amount of consideration for transfer of virtual digital asset. Accordingly, tax of 4,475 is required to be deducted at source.