Imagine winning the 1st Prize of ₹1 Lakh in the Bodoland Lottery! It is a dream come true. But wait—will you get the full ₹1,00,000 in your bank account? The answer is No.
In India, all lottery winnings are subject to income tax rules. Many winners are surprised when they receive less money than the announced prize. In this article, we explain the TDS (Tax Deducted at Source) rules simply, so you know exactly how much cash you will take home.
1. The 30% Tax Rule (Section 194B)
According to the Income Tax Act of India (Section 194B), any income from lotteries, crossword puzzles, or card games is taxed at a flat rate of 30%.
This is a “Flat Rate,” meaning it does not matter if you are rich or poor; the tax percentage remains the same for lottery winnings. Additionally, there is a 4% Health and Education Cess added to the tax amount.
So, the effective tax rate is approximately 31.2%.
2. When is Tax Deducted? (The Limit)
The government has set a threshold limit.
- Winnings up to ₹10,000: No Tax (TDS) is deducted. You get the full amount.
- Winnings above ₹10,000: TDS is mandatory. The government cuts the tax before giving you the money.
3. Calculation: If You Win the 1st Prize (₹1 Lakh)
Let’s do the math for the Bodoland Lottery Jackpot.
- Announced Prize: ₹1,00,000
- Tax Limit: Since it is above ₹10,000, TDS applies.
- TDS Deduction (30%): ₹30,000
- Cess (4% on Tax): ₹1,200
- Total Deduction: ₹31,200
- Final Amount You Receive: ₹68,800 (Approx).
So, if you hit the jackpot, expect around ₹68,000 to ₹70,000 in your hand.
4. What About Small Prizes?
This is good news for daily players!
- 2nd Prize (₹7,000): Since this is below ₹10,000, NO TAX is cut. You get full ₹7,000.
- 3rd Prize (₹3,500): Full amount.
- 4th, 5th, 6th Prizes: Full amount.
You can verify these prize categories on our Today Result page.
5. Can I Claim a Tax Refund?
Many people ask, “My income is low, can I get this 30% tax back?”
Unfortunately, No. Lottery tax is a special tax. You cannot claim a refund on it even if your total yearly income is below the taxable limit. The 30% deduction is final.
However, when you file your Income Tax Return (ITR), you must show this as “Income from Other Sources.”
6. Why is the Tax So High?
The government treats lottery winnings as “Windfall Gain” (unexpected money). Unlike a salary which you work hard for, lottery is considered luck-based, hence the higher tax rate to discourage addiction and generate national revenue.
Conclusion
Winning is always great, even after tax! Understanding these rules helps you plan better. If you have won a big prize, check our guide on How to Claim Prize Money to start the process.
Stay updated and keep checking your tickets on BodolandLotterie.com.
