Lottery taxation in Kerala follows specific regulations set by the Indian government and state authorities. For lottery prizes amounting to 70 lakh rupees, the tax implications are significant and must be understood by winners.
Under Indian tax laws, lottery winnings are considered income from other sources and are subject to Tax Deducted at Source （TDS）. For prizes exceeding 10,000 rupees, a 30% TDS is applicable under Section 194B of the Income Tax Act. This means for a 70 lakh rupee lottery prize, approximately 21 lakh rupees would be deducted as TDS.
Kerala state lottery products are popular across India, offering various draw schedules and prize structures. The state government operates these lottery schemes as a revenue generation method, with proceeds supporting public welfare programs.
Indian lottery winners should also consider that the TDS deducted is not the final tax liability. The winnings must be declared in the annual income tax return, and depending on the winner\“s total income and tax slab, additional tax may be payable or refunds may be claimed.
It\“s important for lottery participants in Kerala and across India to maintain proper documentation of their winnings and TDS certificates for accurate tax filing. Consulting with a tax professional is recommended to ensure compliance with all tax regulations. |
