Ask Experts » Finance and Investments » Tax Planning »

Lottery tax in India

Date: 05 Dec 2015    Group: Finance and Investments    Category: Tax Planning   

If I am playing lottery online but a U.S. lottery, then what taxes I have to pay to Indian government. What are taxes on a winning lottery according to Indian laws?

Playing online lottery? Know if there are any taxes or liabilities on a winning lottery levied by Indian govt.

Author: Kailash Kumar    05 Dec 2015      Member Level: Platinum     Points : 2  (Rs 2)    Voting Score: 0

Proceeds of winning lottery are taxable at flat rate of 30 percent. In addition 3% education cess is also applicable. Thus the total tax liability will be 30.9%. This tax is deducted at source. The basic exemption limit etc. is not applicable in case of winning lottery.

Author: Partha Kansabanik    05 Dec 2015      Member Level: Diamond     Points : 1  (Rs 1)    Voting Score: 0

Mr. Kailash Kumar has given the requisite information. I would only add that from 15th November, 2015, another cess relating to 'Swachh Bharat' campaign @ 0.5% has been imposed. This will marginally increase the tax liability further.

Author: Tara    25 Dec 2015      Member Level: Silver     Points : 3  (Rs 3)    Voting Score: 0

If you are playing online lottery pertaining to another country from India, then you are eligible to pay tax at 33.33 percent plus 3% education cess along with recently introduced 0.5% swatch bharath cess . You are not eligible for any other exemption as you are for salary income because this amount is earned by way of lottery.

Post Answer

You must Sign In to post a response.

Post Answer        

Related Questions
  • Return to Question Index
  • Ask Question to Experts

  • Awards & Gifts
    Top Contributors
    TodayLast 7 Daysmore...

    ISC Technologies, Kochi - India. © All Rights Reserved.