In India, lottery winnings are subject to taxation under the Income Tax Act. The tax rate on lottery winnings is 30% for individuals, plus applicable surcharge and cess, making the effective tax rate higher. This tax is deducted at source （TDS） by the lottery operator when the prize is paid out.
Additionally, winners must report the income in their tax returns, and failure to do so can lead to penalties. It is important to note that state-specific rules may vary, so consulting a tax advisor is recommended for accurate calculations. |
