Tax on Kerala Lottery Winning Amount.
The Kerala State Lotteries Department announces the results of the lottery. Those who participate in the lottery and win it gain huge winning amount, thus attracting income tax.
The Kerala State Lotteries Department announces the results of the lottery. Those who participate in the lottery and win it gain a huge winning amount, thus attracting income tax. The Income Tax Act, 1961, contains provisions for taxing lottery winnings in India. Here’s the amount of tax you need to pay on winning a lottery:
Tax on Lottery Winnings (Section 115BB)
According to Section 115BB, a person is liable to pay taxes in case of winning amount from a lottery. It said, “Where the total income of an assessee includes any income by way of winnings from any lottery or crossword puzzle or race including horse race (not being income from the activity of owning and maintaining race horses) or card game and other game of any sort or from gambling or betting of any form or nature whatsoever, the income-tax payable shall be the aggregate of-
(i) The amount of income-tax calculated on income by way of winnings from such lottery or crossword puzzle or race including horse race or card game and other game of any sort or from gambling or betting of any form or nature whatsoever, at the rate of ][30%.] [ Substituted by Act 14 of 2001, Section 54, for ” forty per cent.” (w.e.f. 1.4.2002).][; and [ Inserted by Act 23 of 1986, Section 26 (w.e.f. 1.4.1987).]
(ii) The amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause (i).”
So, according to this section, in case of lottery winning, a person is liable to pay:
- 30% tax rate on lottery winnings is indeed correct.
- The income earned from lotteries, crossword puzzles, races, etc., is classified as “Income from Other Sources” and taxed at a flat rate of 30%, regardless of the total income of the winner.
- Additionally, a 4% Health and Education Cess is applied on the tax, making the effective rate 31.2%.
TDS Provisions (Section 194B)
Meanwhile, according to Section 194B, TDS applies when the lottery prize exceeds Rs 10,000, and tax must be deducted at the rate of 31.2%. This provision ensures that the tax is deducted at the source before the prize is paid to the winner.
The tax on the winning amount from the Kerala lottery is also applicable even if the individual’s overall income is within the income tax exemption limit. The amount is categorised as ‘Income from Other Sources’ under Section 56 of the IT Act.
Additional Surcharge
An additional surcharge of 10% is applicable if the winning amount exceeds Rs 10 lakh. This is important for higher-tier lottery winners.
Kerala Lottery: Tax Calculation
- Winning Amount: Rs 1 Crore
- Tax Deducted at Source (31.2%): Rs 31,20,000
- Net Winning Amount: Rs 68,80,000.
Penalty for Non-Payment of Tax (Section 271C)
Failure to deduct TDS on lottery winnings can lead to a penalty equal to the amount of tax that should have been deducted.
How to Download a PDF With a Full List of Winning Numbers?
- Visit the Kerala Lottery Department’s official websites at keralalotteries.info or keralalotteryresult.net.
- After that, click on the NIRMAL NR-399 Result link.
- The entire list of winning numbers for the NR-399 ticket will appear on your homepage.
- Click the download link to get the NR-399 lottery results in PDF format.
Kerala Lottery: Weekly Draw
- MONDAY: Win Win – First prize Rs 75 lakh
- TUESDAY: Sthree Sakthi – First prize Rs 75 lakh
- WEDNESDAY: Fifty Fifty – First prize Rs 1 crore
- THURSDAY: Karunya Plus – First prize Rs 80 lakh
- FRIDAY: Nirmal – First prize Rs 70 lakh
- SATURDAY: Karunya – First prize Rs 80 lakh
- SUNDAY: Akshaya – First prize Rs 70 lakh
KERALA BUMPER LOTTERIES
- January: Xmas New Year Lottery
- March: Summer Bumper Lottery
- May: Vishu Bumper Lottery
- July: Monsoon Bumper Lottery
- September: Thiruvonam Bumper Lottery
- October: Onam Bumper Lottery
- November: Pooja Bumper Lottery.
