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In India, winning a lottery prize of 7 crore rupees is subject to specific tax regulations under the Income Tax Act. The lottery tax is levied as per Section 194B, where a 30% tax deduction at source （TDS） applies to winnings exceeding Rs 10,000. Additionally, winners may need to pay cess and surcharge, making the total tax liability around 31.2%. This tax is mandatory and must be deducted by the lottery operator before disbursing the prize. It is essential for winners to declare this income in their tax returns to avoid penalties. Understanding these rules helps in proper financial planning after a big win. |
