how much tax on winning lottery

In India, lottery winnings are subject to taxation under the Income Tax Act. The tax treatment depends on whether the lottery is considered a game of chance or skill.

For lottery winnings from games of chance, the entire amount is taxable under the head \“Income from Other Sources\“. The tax rate is 30% plus applicable cess and surcharge, without any basic exemption limit.

However, if the lottery winnings are from games of skill, they may be treated differently. Popular Indian lottery products like state-government run lotteries and online lottery platforms all fall under the taxable category.

It\“s important to note that TDS （Tax Deducted at Source） is applicable on lottery winnings exceeding Rs. 10,000. The lottery operator or prize payer must deduct tax at 30% before making the payment.

Many Indian states have their own lottery systems, and the tax implications remain consistent across these products. Proper documentation and filing of income tax returns is essential for lottery winners in India.