In Kerala, lottery winnings are subject to taxation under the Income Tax Act of India. When an individual wins a lottery prize of 50 lakh rupees or more, they must pay a mandatory tax deduction at source （TDS） of 30% on the total prize amount. This means that for a 50 lakh rupee lottery win, 15 lakh rupees will be deducted as tax, leaving the winner with 35 lakh rupees.
Additionally, winners may need to include the lottery income in their annual tax returns, and if their total income exceeds the basic exemption limit, they could be liable for further taxes. It is important for lottery winners in Kerala to consult with a tax advisor to ensure compliance with all tax regulations and to understand any applicable deductions or exemptions.
Lottery tickets are a popular form of gambling in Kerala, operated by the state government. The Kerala State Lotteries Department conducts various draws, and prizes range from small amounts to crores of rupees. The tax on lottery winnings is designed to generate revenue for the government and is a key aspect of the legal gambling framework in the state. |
