In India, lottery winnings are considered as income from other sources and are fully taxable under the Income Tax Act, 1961. The tax treatment depends on whether the lottery is organized by the state government or a private entity.
For state government lotteries, the tax is deducted at source （TDS） at the rate of 10% if the winnings exceed Rs 10,000. For private lotteries, the TDS rate is 30% without any threshold limit. The winner must also include the lottery income in their total income and pay tax as per their applicable income tax slab rates.
Some popular local lottery products in India include Kerala State Lottery, Sikkim State Lottery, and Punjab State Lottery. These government-run lotteries offer various schemes and draws throughout the year. |
