Kerala lottery is a popular form of gambling in the Indian state of Kerala, operated by the Kerala State Lotteries. When it comes to taxation on lottery winnings, the tax implications vary based on the amount won and the type of lottery.
In India, lottery winnings are considered income from other sources and are subject to tax under the Income Tax Act, 1961. For Kerala lottery prizes, if the winnings exceed Rs. 10,000, a Tax Deducted at Source （TDS） of 30% is applicable. This means that if you win a prize above this threshold, the lottery department will deduct 30% of the winnings as tax before paying you the remaining amount.
Additionally, if the total lottery winnings in a financial year exceed Rs. 50,000, the prize money is subject to a 10% surcharge on the tax amount, along with a 4% health and education cess. It\“s important to note that these tax rates are for individuals, and different rules may apply for entities like companies.
To claim a refund or adjust the TDS, winners must file their income tax returns and declare the lottery winnings. Proper documentation, such as the lottery ticket and payment receipt, should be maintained for tax purposes. Always consult a tax professional for personalized advice based on your specific situation. |
