In India, lottery winnings are considered taxable income under the Income Tax Act, 1961. All lottery prizes, including cash and non-cash rewards, are subject to tax deductions at source （TDS） at a rate of 30% under Section 194B. This applies to winnings from lotteries, crossword puzzles, card games, and other similar activities.
The tax liability arises regardless of the amount won, and the prize money is taxed under the head \“Income from Other Sources\“. Winners must also consider the impact of cess and surcharge, which can increase the effective tax rate. It is important for winners to declare such income in their tax returns to avoid penalties.
Additionally, some states in India have their own lottery regulations, but the central tax laws uniformly apply across the country. Proper documentation and timely tax payments are essential to comply with Indian tax laws. |
