Understanding Lottery Tax (TDS) in India
If you win a lottery in India, you do not get the full amount. The government deducts tax at the source.
The 30% Rule
According to Section 194B of the Income Tax Act, any winning exceeding ₹10,000 is subject to a flat TDS rate of 30%.
Calculation Example (1 Crore Prize)
- Winning Amount: ₹1,00,00,000
- TDS (30%): ₹30,00,000
- Surcharge (if applicable): Extra based on total income.
- Net Payable to You: Approx ₹70,00,000