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In Kerala, India, the lottery industry is a significant revenue generator for the state government. When it comes to the 25 crore lottery, which refers to a lottery with a prize pool of 25 crore rupees （approximately $3 million）, the tax implications are crucial for winners to understand. The Kerala government imposes a tax on lottery winnings as per the Income Tax Act of India. Typically, lottery winnings are considered income from other sources and are subject to a flat tax rate of 30% under Section 115BB. Additionally, if the winnings exceed a certain threshold, a surcharge and health and education cess may apply, bringing the effective tax rate to around 31.2%. For a 25 crore lottery prize, the tax deducted at source （TDS） would be substantial, often amounting to several crores. It\“s important for winners to consult with tax professionals to ensure compliance and plan for their financial future, as the local tax laws can be complex and vary based on individual circumstances. |
