In India, the taxation rules for lottery winnings are governed by the Income Tax Act. When you win the first prize in Dear Lottery, the tax implications are significant and must be properly understood.
The first prize amount in Dear Lottery is subject to Tax Deducted at Source （TDS） at the rate of 30% under Section 194B of the Income Tax Act. This means that if you win a prize exceeding ₹10,000, the lottery operator will deduct 30% TDS before paying you the prize money.
Additionally, the lottery winnings are considered as income from other sources and must be included in your total income for the financial year. You may need to pay additional tax if your total income falls in higher tax brackets after including the lottery winnings.
It is important to note that different states in India may have varying tax rules for lottery winnings, so winners should consult with a tax professional to understand the complete tax liability based on their residential state and total income. |
