You keep about
–
- You keep
- Tax, surcharge, cess
- Commission
Big prize? Get it checked
The right regime and timely advance tax can save lakhs. Ask for a free first review with a vetted chartered accountant.
Request a reviewHow this calculator works
- Commission is taken off the prize first (10% on Kerala tickets).
- Tax is a flat 30% of what remains, with no deductions or exemptions.
- A surcharge applies to that tax if your total income (winnings plus other income) exceeds ₹50 lakh: 10%, 15% or 25%, and 37% above ₹5 crore under the old regime (capped at 25% under the new regime).
- A 4% health and education cess is charged on tax plus surcharge.
The payer deducts 30% TDS on winnings above ₹10,000 (Section 393(3) of the Income-tax Act, 2025, formerly 194B). Surcharge and cess are usually paid by you as advance tax. Marginal relief near the surcharge thresholds is not modelled. Read the full lottery tax guide.
Can I reduce tax on lottery winnings?
Not with deductions — the 30% rate is fixed. What you can control is the surcharge regime, paying advance tax on time to avoid interest, and how the money is used afterwards. That is where professional advice pays for itself.
Is a ₹5,000 prize tax-free?
No TDS is deducted on prizes of ₹10,000 or less, but the winnings are still taxable at 30% when you file your return.
Does this work for game shows and quizzes?
Yes. Choose “Other lottery, game show or contest” to remove the commission. Prizes in kind are valued at market price.