Kerala Lottery Tax Calculator
Prizes above ₹10,000 lose 10% agent commission first. 30% TDS under Section 393(3) of the Income-tax Act 2025 (formerly Section 194B) comes off the rest.
| Prize | ₹12,00,00,000 |
|---|---|
| Agent commission | − ₹1,20,00,000 |
| TDS deducted | − ₹3,24,00,000 |
| Estimated amount credited | ₹7,56,00,000 |
The commission rate follows Onmanorama’s prize breakdown. Surcharge and 4% health and education cess are settled in the income tax return. This is a calculation, not tax advice.
How much tax is deducted from a Kerala lottery prize?
A Kerala lottery prize above ₹10,000 has 30% tax deducted at source (TDS). The Directorate of State Lotteries deducts it before paying the winner. The deduction falls under Section 393(3) of the Income-tax Act 2025 (formerly Section 194B).
TDS is worked out on the prize after the selling agent’s commission comes off. The calculator above follows that order: commission first, then TDS on the remainder. Prizes of ₹10,000 or less are paid without any TDS.
What is Section 393(3), and how does it relate to Section 194B?
Section 393(3) of the Income-tax Act 2025 is the TDS provision for lottery winnings. It replaced Section 194B of the Income-tax Act 1961. The rate stayed at 30%, and the ₹10,000 threshold stayed the same.
How is lottery tax calculated in India?
Lottery tax in India is a flat 30% on winnings, plus 4% cess on that tax. The rate comes from the national Income-tax Act, so it is the same for every state lottery. Large winnings carry a surcharge on top.
The flat rate makes lottery tax different from salary tax in 3 ways.
- Rate: 30% from the first rupee of taxable winnings, with no lower slabs.
- Exemption: the basic exemption limit does not reduce lottery income.
- Deductions: Section 80C and other deductions cannot be set against lottery winnings.
The 4% cess applies to the tax, not to the prize. Tax of 30% plus 4% cess on it gives an effective rate of 31.2% before any surcharge.
How do you calculate the tax on a lottery prize by hand?
- Take the prize amount printed on the official result sheet.
- Subtract the agent’s commission to get the net prize.
- Multiply the net prize by 30% to get the TDS.
- Subtract the TDS from the net prize to get the amount credited.
- Add cess, and surcharge on large prizes, when you file the income tax return.
How much does the winner receive from common Kerala lottery prizes?
The winner receives the prize minus the agent’s commission and 30% TDS. This table shows the estimate for the top tiers of the latest Karunya draw.
| Prize | Agent commission | TDS | You receive |
|---|---|---|---|
| 1st prize · ₹1 crore | ₹10,00,000 | ₹27,00,000 | ₹63,00,000 |
| Consolation prize · ₹5,000 | ₹0 | ₹0 | ₹5,000 |
| 2nd prize · ₹25 lakh | ₹2,50,000 | ₹6,75,000 | ₹15,75,000 |
| 3rd prize · ₹10 lakh | ₹1,00,000 | ₹2,70,000 | ₹6,30,000 |
Prizes above ₹10,000 lose 10% agent commission, according to Onmanorama. 30% TDS is then deducted from the rest. Surcharge and 4% cess are settled in the income tax return.
Prizes from KR-770 must be claimed by 1 January 2027 (88 days left).
The calculator has 7 presets, from ₹30 crore and ₹12 crore down to ₹1 lakh and ₹5,000. Type any other prize to see its own breakdown. The full list of prize amounts is on the Kerala lottery prize structure page.
Which Kerala lottery prizes have no TDS?
Prizes of ₹10,000 or less have no TDS deducted. In a weekly draw that covers 7 tiers: the consolation prize and the 4th to 9th prizes. These range from ₹5,000 down to ₹100.
No TDS is not the same as no tax. These prizes are still lottery income for the year. Winners include them in the income tax return with the larger prizes.
How much tax is due on a bumper prize?
A bumper prize has the same 30% TDS, plus surcharge and cess at the return. Bumper first prizes run to crores of rupees. The Thiruvonam (Onam) Bumper BR-111 paid ₹30 crore, and the Pooja Bumper BR-112 offers ₹12 crore.
Surcharge applies once total income crosses the surcharge thresholds of the Income-tax Act. Every bumper first prize crosses them. The TDS deducted at payment covers the 30% only. The surcharge and the 4% cess on the tax are settled when the return is filed.
What is due when you file the income tax return?
The income tax return reports the full winnings and settles any cess or surcharge not covered by TDS. Lottery winnings are shown as income from other sources. The TDS already deducted counts as tax paid.
A winner below the surcharge thresholds owes the 4% cess on the 30% tax. Large winners add surcharge to that. A chartered accountant works out the exact figure for prizes in lakhs and crores.
How do you check the TDS deducted from a lottery prize?
The TDS deducted from a lottery prize appears against the winner’s PAN in Form 26AS and the AIS. AIS is the Annual Information Statement. Both are on the income tax e-filing portal. The paying office issues a TDS certificate for the deduction.
- Log in to the income tax e-filing portal with your PAN.
- Open Form 26AS or the Annual Information Statement for the financial year of the claim.
- Match the TDS entry with the amount on the TDS certificate.
- Report the winnings and claim the TDS credit in the return.
Where do the claim and the tax meet?
Tax is deducted at the claim office, so the claim route decides when TDS applies. Prizes above ₹5,000 go to a lottery office: see how to claim a Kerala lottery prize. A number can be checked against every recent draw with the Kerala lottery ticket checker.
Lottery tax questions
How much tax is deducted on a ₹1 crore Kerala lottery prize?
30% TDS on the amount left after the agent’s commission. The calculator above shows the amount credited for ₹1 crore. Cess on the tax is settled in the income tax return.
What is the lottery tax rate in India?
The lottery tax rate in India is a flat 30%. A 4% cess is added to the tax, and a surcharge applies on large winnings.
What is the TDS threshold for lottery winnings?
TDS applies to lottery winnings above ₹10,000. A prize of ₹10,000 or less is paid without TDS.
Which section of the Income-tax Act covers lottery TDS?
Section 393(3) of the Income-tax Act 2025 (formerly Section 194B). The rate and threshold did not change with the new Act.
How much tax is due on a ₹25 crore or ₹30 crore bumper prize?
30% TDS on the prize after commission, deducted at payment. Surcharge and 4% cess on the tax are added when the return is filed.
How much tax is due on the ₹12 crore Pooja Bumper prize?
30% TDS on the prize after commission, then surcharge and cess at the return. Pick the ₹12 crore preset in the calculator for the amount credited.
How much tax is deducted from a ₹30 lakh 2nd prize?
30% of the 2nd prize after commission. The calculator preset for ₹30 lakh shows the commission, the TDS and the amount credited.
What is the effective tax rate on lottery winnings?
31.2% before surcharge: 30% tax plus 4% cess on that tax. Surcharge raises it for large winnings.
When is TDS calculated: before or after the agent's commission?
After the commission. The agent’s commission comes off the prize first, and 30% TDS is deducted from the remainder.
Where do lottery winnings go in the income tax return?
Lottery winnings are reported under income from other sources. The TDS already deducted is claimed as tax paid.
How do I see the TDS deducted from my lottery prize?
Check Form 26AS or the Annual Information Statement on the income tax e-filing portal. The TDS appears against your PAN.
Is a ₹5,000 Kerala lottery prize taxed?
No TDS is deducted from a ₹5,000 prize, because it is below the ₹10,000 threshold. The winnings remain income for the income tax return.
Is lottery tax different in Kerala from other states?
No. Lottery tax comes from the national Income-tax Act. The same 30% applies to every state lottery.
Can I reduce lottery tax with Section 80C deductions?
No. Section 80C and other deductions cannot be set against lottery winnings. The basic exemption limit does not apply to them either.
Can I get a refund of the TDS on a lottery prize?
No, not of correctly deducted TDS: it is the tax on the winnings. A refund arises only when more than the correct amount was deducted.
Is this calculator exact?
No. It is an estimate of the amount credited. Surcharge and cess are settled in the return, so a chartered accountant confirms the final figure.
More Kerala lottery guides
- Kerala lottery result today
- How to claim a Kerala lottery prize
- Kerala lottery prize structure
- Kerala lottery ticket checker
- Kerala bumper lottery 2026
- Playing the Kerala lottery responsibly
Sources: Income-tax Act 2025, Section 393(3) (formerly Section 194B, Income-tax Act 1961); Income Tax Department e-filing portal; official Kerala State Lotteries result sheets. Estimates only, not tax advice.