In India, the local lottery system operates under specific regulations and tax implications that differ from the Canadian lottery tax structure. Indian lottery winnings are subject to tax deducted at source （TDS） under Section 194B of the Income Tax Act, which mandates a 30% tax on winnings exceeding ₹10,000. This is different from Canada where lottery winnings are generally tax-free at the federal level, though provincial variations may apply.
Indian lottery products are primarily state-regulated, with popular state lotteries like Kerala, Punjab, and Goa offering various draws. These products include traditional paper lotteries and increasingly, online platforms. The revenue generated supports state development projects, similar to how Canadian lottery funds contribute to community programs. However, unlike Canada\“s tax-free approach, Indian winners must carefully navigate tax filings to avoid penalties, making financial planning crucial for lottery participants in India. |
