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In India, lottery winnings are subject to taxation under the Income Tax Act, 1961. According to Section 194B, any prize money from lotteries, crossword puzzles, or other games exceeding Rs. 10,000 is taxed at a flat rate of 30% plus applicable cess and surcharge. This tax is deducted at source （TDS） by the payer, such as the lottery organizer or distributor. For example, if you win a lottery prize of Rs. 50,000, the TDS would be Rs. 15,000 （30% of Rs. 50,000）, and you would receive the remaining amount. It is important to note that this income must be declared in your annual tax return under the head \“Income from Other Sources\“. Failure to do so can lead to penalties. Additionally, some state-specific lotteries may have varying rules, so winners should consult local authorities or a tax advisor for accurate guidance. |
