Horse owners and racing professionals in the country in general, and Karnataka in particular, heaved a sigh of relief when the Karnataka High Court yesterday ruled that TDS (tax deducted at source) is not applicable to winnings earned by horse owners by way of stake money.

In an unprecedented and aggressive move last year, the Income Tax department had issued orders to the Bangalore turf club (BTC) that they must deduct tax at source before crediting the accounts of horse owners, trainers and jockeys with stake money earned as winnings.