TDS applicability on lottery or game show income. If the Prize money exceeds Rs 10,000, then the winner will receive the prize money after the deduction of TDS @31.2% u/s 194B. Please note that it does not matter whether the income of the winner is taxable or not. The prize distributor is liable to deduct tax at the time of payment.
Facts about Lottery tax winnings in India. Lottery winnings are taxable in India under the Finance Act of 1986 and Income Tax Act at a flat 30% rate.There is an extra percentage surcharge for winnings over a set amount and a further 3% 'Cess' charged for improving education and health care.
The Lotteries (Regulation) Act 1998 regulates these activities around India. A lottery is defined in the country as an event where people purchase tickets to potentially win a payout. The General Tax Rate. The basic tax rate throughout India for lottery winnings is 30 percent. The rate is specific for the taxation of lottery winnings.
Lottery Taxes in India – 2 Different Types. Taxes aren’t the best but a necessary part of a functioning society and lottery taxes are not an exception. In India taxes on lotteries are divided into two different categories – for lottery providers and for lottery players.
There is also a 2% education cess and 1% Secondary and Higher Secondary Education Cess on this 30% tax. This brings the total tax on game show winnings to 30.9%. An additional 10% surcharge is also applicable on the winning amount if the amount is more than Rs. 10 lakh. This TDS has to be deducted ...
Lottery tax relation with income tax Your income tax rate is not affected by how lottery winnings are taxed in India. For instance, if your annual income is below Rs 2.5 lacs (or Rs 5 lacs, you won’t need to pay the income tax depending on your tax structure).
Answer (1 of 12): Lottery Income means the money received on winning a lottery. Incomes such as winning from lottery, winning from puzzles, gambling, betting, horse race, game shows etc are called special incomes under the Indian Income Tax Act.
According to tax experts, income by way of winning from lotteries, crossword puzzles, card games and other games of any sort, or from gambling or betting of any form or nature whatsoever is ...