In India, lottery winnings are considered as income from other sources under the Income Tax Act, 1961. According to Indian tax laws, any lottery winnings exceeding Rs. 10,000 are subject to Tax Deducted at Source （TDS） at a rate of 30% under Section 194B of the Income Tax Act.
The tax treatment of lottery winnings in India is quite straightforward - the entire amount is taxable as income. Unlike some countries where lottery winnings might be treated as capital gains or subject to different tax brackets, in India, lottery prizes are fully taxable at the specified rate.
It\“s important to note that if the lottery prize is received in kind （such as cars, property, or other assets）, the fair market value of such assets is considered as income and taxed accordingly. The recipient must include this amount in their total income while filing income tax returns.
For non-resident Indians winning lotteries in India, the tax implications remain the same, with TDS being deducted at source. However, they may be eligible for benefits under Double Taxation Avoidance Agreements if their country of residence has such an agreement with India. |
