As per Government of India, if you receive money from winning the lottery, Online/TV game shows etc., it will be taxable under the head Income from other Sources. The income will be taxable at the flat rate of 30% which after adding cess will amount to 31.2%.Incomes from following sources come under this category:

  • Lottery

  • Game Show or any entertainment programme television or electronic mode

  • Crossword Puzzle

  • Gambling or betting

  • Races including Horse races.

TDS Applicability

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. 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. In the case of winnings from horse races, TDS will be applicable if the amount exceeds Rs 10,000.

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