What is the current tax rate on lottery winnings in India?

The tax rate on lottery winnings in India is 30% flat rate plus applicable surcharge and cess, making the effective rate up to

74% for high earners. 2. Is TDS deducted on all lottery winnings?

TDS applies only when lottery winnings exceed ₹10,000 in a single transaction. However, all winnings remain taxable regardless of TDS deduction.

No deductions are allowed against lottery winnings. The entire prize amount is taxable at 30% rate without any exemptions.

Yes, if your total income including lottery winnings exceeds ₹

Income tax on foreign lottery winnings in India is calculated at 30% rate, with credit available for taxes paid abroad under DTAA provisions.

Non-payment attracts penalties, interest charges, and potential prosecution for tax evasion. Timely compliance is essential for all winners.

No, income tax on lottery in India applies uniformly regardless of whether it’s a central or state government lottery.

Advance tax is due if your total tax liability exceeds ₹10,

Lottery winnings cannot be set off against any losses. They are taxed as a separate source of income at a flat 30% rate.

Essential documents include lottery tickets, winning certificates, TDS certificates, and bank statements showing prize credit transactions.

Vishakha Gaur

May 27, 2025

10 min read

Content writer at RegisterKaro, specializing in business registration and compliance topics.