Calculate your take-home winnings after Indian tax deductions
Enter your lottery prize amount to see the tax breakdown and your actual take-home amount.
Under Section 194B of the Income Tax Act 1961, all lottery winnings exceeding ₹10,000 are subject to 30% TDS (Tax Deducted at Source). This means the lottery department or organiser deducts the tax before paying you. You receive the net amount after tax.
This flat 30% rate applies regardless of your income slab or other earnings. Lottery income is taxed under "Income from Other Sources" and no deductions, exemptions or set-offs are allowed against it.
For larger prizes, an additional surcharge applies on top of the 30% base rate:
| Taxable Winnings | Surcharge Rate | Effective TDS |
|---|---|---|
| Up to ₹50 Lakh | Nil | 30% |
| ₹50 Lakh – ₹1 Crore | 10% | 33% |
| ₹1 Crore – ₹2 Crore | 15% | 34.5% |
| ₹2 Crore – ₹5 Crore | 25% | 37.5% |
| Above ₹5 Crore | 37% | 41.1% |
On top of the TDS and surcharge, a 4% Health & Education Cess is levied on the total tax amount (including surcharge). This brings the maximum effective tax rate to approximately 42.74% for the largest prizes.
If you win an international lottery (like US Powerball or Mega Millions) while playing from India, the winnings are taxable in India. You may also face withholding tax in the country where the lottery is held — for example, the US deducts 30% on non-resident lottery wins. India's DTAA (Double Taxation Avoidance Agreement) with some countries may allow you to claim credit for tax paid abroad, but the specifics depend on the country and the terms of the relevant treaty.
Some states may deduct an agent commission from your prize before calculating tax. For example, Kerala deducts 10% agent commission from prizes above a certain threshold before applying TDS. The exact deductions vary by state and prize tier.
Yes. Even though TDS is deducted at source, you must declare lottery income in your annual Income Tax Return (ITR). Lottery winnings should be reported under "Income from Other Sources" using ITR-1 or ITR-2.
No. Section 115BB of the Income Tax Act specifically states that no deductions under Chapter VI-A (like 80C, 80D etc.) can be claimed against lottery winnings. The 30% tax is flat and non-negotiable.
Prizes up to ₹10,000 are not subject to TDS. However, you should still declare them in your tax return. If your total income (including lottery winnings) exceeds the basic exemption limit, tax will be due.
Yes. GST at 28% is levied on the face value of lottery tickets. However, this is already included in the ticket price you pay — it's not an additional charge on your winnings.
Tax on lottery winnings in India is governed by central law (Section 194B of the Income Tax Act), so the 30% TDS rate is the same across every state. However, some states have additional deductions or local rules that affect your net payout. Here's a state-by-state guide.
Kerala State Lotteries are among India's most popular, with weekly draws like Karunya, Nirmal, Win-Win, Akshaya, Sthree Sakthi, and Pournami. All prizes above ₹10,000 attract 30% TDS under Section 194B. Kerala also deducts a 10% agent commission from higher-tier prizes before calculating TDS, which reduces the net payout compared to the headline prize amount. The effective take-home on a ₹1 Crore Kerala prize is approximately ₹57,71,400 after agent commission, TDS, surcharge, and cess. GST at 28% is included in the ticket price (typically ₹30–₹50).
Nagaland State Lotteries (popularly known as the "Dear" lottery series — Dear Morning, Dear Day, Dear Evening, Dear Night) are sold across India. Prizes above ₹10,000 are subject to the standard 30% TDS plus applicable surcharge and cess under Section 194B. There are no additional state-level deductions unique to Nagaland. The lottery is legal and regulated under the Lotteries (Regulation) Act, 1998.
Punjab State Lottery is operated by the Punjab State Lotteries Department. Winnings above ₹10,000 are subject to 30% TDS under central law. No separate Punjab state income tax applies to lottery prizes — all deductions follow the standard central rules of TDS, surcharge, and 4% cess. Punjab lottery tickets are widely sold through authorised agents.
Sikkim operates the Sikkim State Lottery and also hosts online lotteries under the Sikkim Online Gaming (Regulation) Act. Physical lottery prize money above ₹10,000 is taxed at 30% TDS under Section 194B. Sikkim has historically had special provisions around gambling and gaming, but central TDS rules fully apply to its lottery prizes. Always verify current rules with a CA if collecting a Sikkim lottery prize.
Goa's Directorate of Small Savings & Lotteries organises bumper lotteries alongside regular draws. All prizes above ₹10,000 attract 30% TDS, with surcharge on larger amounts. Goa is notable for also permitting casinos, where winnings face the same 30% TDS treatment under Section 194B. No additional state deduction applies to Goa lottery prizes beyond the standard central tax.
Maharashtra State Lottery (including popular bumper draws like Diwali, Ganesh, and Republic Day lotteries) follows the same central tax rules: 30% TDS on prizes above ₹10,000, plus surcharge and cess for larger amounts. Maharashtra does not impose additional state-level lottery tax. Winnings must be declared in your ITR under "Income from Other Sources".
West Bengal State Lottery is run by the Directorate of State Lotteries. The standard 30% TDS under Section 194B applies to all prizes above ₹10,000. West Bengal does not levy any additional state income tax on lottery winnings. The state also sells lotteries from other states, all taxed the same way under central law.
Assam State Lottery draws are organised by the Assam Lotteries Department. Prizes exceeding ₹10,000 are subject to 30% TDS under Section 194B, with applicable surcharge (up to 37% on TDS for prizes above ₹5 Crore) and 4% cess. No Assam-specific state tax is levied on top of the central TDS. Prize-winning tickets must be submitted to the lottery office along with PAN for tax deduction.
Meghalaya State Lottery is one of India's active state lottery operators. Central TDS rules apply: 30% on prizes above ₹10,000, plus surcharge and cess. Meghalaya does not add any state-specific lottery tax on top of the central deduction. Winners should retain the original winning ticket and provide PAN to collect prizes and receive the post-TDS amount.
Mizoram State Lottery prizes above ₹10,000 attract the standard 30% TDS under central law. No additional state income tax applies in Mizoram for lottery winnings. The surcharge and cess structure is the same as all other Indian states, with the total tax rising to up to 42.74% for the largest prizes.
Arunachal Pradesh State Lottery follows the same national framework: 30% TDS on prizes above ₹10,000 under Section 194B of the Income Tax Act, plus surcharge on high-value wins and 4% Health & Education Cess. Arunachal Pradesh does not levy any additional local or state tax on lottery winnings.