In India, lottery winnings are subject to specific tax regulations under the Income Tax Act. The tax treatment depends on whether the lottery prize is received from a government or private lottery.
For lottery winnings exceeding Rs. 10,000, a Tax Deducted at Source （TDS） of 30% is applicable under Section 194B of the Income Tax Act. This tax is deducted by the lottery operator before distributing the prize money to the winner.
Additionally, lottery winnings are considered as income from other sources and must be reported in the income tax return. The total winnings are added to the individual\“s total income and taxed according to their applicable income tax slab rates.
It\“s important to note that some state governments also levy their own taxes on lottery winnings, which may vary from state to state. Winners should consult with a tax professional to understand their complete tax liability. |
