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In India, lottery winnings are subject to taxation under the Income Tax Act, 1961. If you win a lottery, the amount is considered as income from other sources and is taxable at a flat rate of 30% under Section 115BB. Additionally, a cess and surcharge may apply, making the effective tax rate higher. For example, if you win Rs. 10 lakhs in a local lottery like the Kerala State Lottery, you might have to pay around Rs. 31.2% in taxes, including cess. It is important to declare such winnings in your income tax return to avoid penalties. Always consult a tax advisor for accurate calculations based on your specific situation. |
