Lottery tax in India varies depending on the type of lottery and the state where it is conducted. For example, in states like Kerala and Punjab, the tax rate on lottery winnings can be as high as 30%. This tax is deducted at source （TDS） by the lottery operator before the prize money is disbursed to the winner.
In addition to the TDS, winners may also be subject to income tax under the head \“Income from Other Sources\“ if the winning amount exceeds the basic exemption limit. It is important for lottery participants to keep proper records of their winnings and consult with a tax advisor to ensure compliance with Indian tax laws.
Some states also impose a GST on lottery tickets, which is typically around 28%. This indirect tax is included in the price of the ticket and is paid by the purchaser at the time of buying the ticket. |
