|
In India, lottery winnings are considered income from other sources and are subject to taxation under the Income Tax Act, 1961. For a lottery prize of 5 crore rupees, the tax implications depend on the amount won and the applicable tax rates. Generally, lottery winnings exceeding a certain threshold are taxed at a flat rate of 30% under Section 115BB of the Income Tax Act, plus applicable cess and surcharge. However, it\“s important to note that this tax is deducted at source （TDS） by the lottery operator, meaning the tax is withheld before the winner receives the prize money. For example, if you win 5 crore rupees, the TDS would be calculated on the entire amount, and you might receive a net amount after deductions. Additionally, winners must report this income in their tax returns to ensure compliance with Indian tax laws. It is advisable to consult a tax professional for accurate calculations based on current regulations. |
