In India, lottery winnings are subject to income tax under the Income Tax Act, 1961. The tax rate on lottery winnings is 30% plus applicable surcharge and cess. This tax is deducted at source （TDS） by the lottery operator when the prize money is paid to the winner.
For lottery winnings exceeding Rs. 10,000, the payer must deduct TDS at 30% under Section 194B of the Income Tax Act. Additionally, a surcharge of 15% may apply if the total income exceeds certain thresholds, and a health and education cess of 4% is also levied on the tax amount.
It is important for winners to declare lottery income in their tax returns under the head \“Income from Other Sources\“. Failure to do so may result in penalties and interest. Winners should also maintain proper documentation of their winnings and TDS certificates for verification purposes. |
