TDS on Lottery: If the amount won is more than Rs 10,000, then people will also have to pay tax on the amount won in India. If tax is not paid on the amount won, action can also be taken against the winner. Let us know about this that if someone gets a lottery worth crores of rupees, then how much money will have to be paid as tax.
Lottery Income:Â Often the news of people getting lottery comes to the fore. In which it is known that people have won a lottery worth lakhs of crores of rupees. But do you know that people cannot keep that much money in their bank account as much as the lottery takes. Actually, if the amount won is more than Rs 10,000, then people will also have to pay tax on the amount won in India. If tax is not paid on the amount won, action can also be taken against the winner. Let us know about this that if someone gets a lottery worth crores of rupees, then how much money will have to be paid as tax.
Lottery
Lottery means that before a scheme can be considered as a lottery, there must be an element of distribution of prizes which must be by chance or by draw of lots and such distribution must take place among persons who have entered into the participating scheme by purchasing tickets; Had to pay the price.
This much tax will be levied
According to Section 115BB of the Income Tax Act 1961, the government imposes tax on winnings from lotteries, crossword puzzles, races including horse races, card games and any kind of gambling or betting of any kind. This section imposes a flat tax rate of 30% i.e. TDS in addition to 4% Cess, after which the total tax becomes 31.20%. After deducting this much tax, the remaining amount will be given to the winner.
Also keep in mind that
according to Section 194B of the Income Tax Act 1961, if the prize money is more than Rs 10,000, then the winner will get the prize money after online deduction of 30% TDS. There will be 30% surcharge (if applicable), 4% educational cess (if the winner is a non-resident).
