In India, lottery winnings are subject to taxation under the Income Tax Act. According to current regulations, any income from lottery winnings is considered as \“income from other sources\“ and is taxable at the applicable slab rates.
The tax deduction at source （TDS） on lottery winnings is 30% under Section 194B of the Income Tax Act. This means that if you win a lottery prize exceeding ₹10,000, the organizer will deduct 30% TDS before paying you the prize money.
It is important to note that lottery winnings are added to your total income and taxed according to your income tax slab. If you fall in a higher tax bracket, you may have to pay additional tax beyond the TDS already deducted.
Many Indian states like Kerala, Punjab, and West Bengal have their own state lottery systems. The taxation rules apply uniformly across all these state-run and private lotteries operating in India. |
