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government tax on lottery winnings

Chikheang • 2025-11-5 10:40:11 • views 864

In India, lottery winnings are subject to specific tax regulations under the Income Tax Act. When an individual wins a lottery prize, the amount is considered as income from other sources and is taxable according to the prevailing tax laws.

The tax rate on lottery winnings in India is 30% under Section 115BB of the Income Tax Act. This tax is applicable regardless of the amount won, and it is deducted at source （TDS） by the lottery operator before the prize money is disbursed to the winner.

Additionally, winners may also be liable to pay surcharge and cess on the tax amount, depending on their total income and the financial year\“s tax provisions. It is important for lottery winners to declare this income in their tax returns to avoid any legal complications.

Various state governments in India also organize lotteries, and the tax treatment may vary slightly based on state-specific regulations. However, the central government\“s tax laws primarily govern the taxation of lottery winnings across the country.