On a ₹1 crore Lottery Sambad win, the Directorate deducts ₹35,88,000 at source and credits ₹64,12,000 to your bank. Full math, worked examples for smaller prizes, and what you need to file.
If you've won a Lottery Sambad prize, the question you searched for is probably the same one every winner asks: how much will I actually receive? The short answer is 68.8% of the prize. The Directorate of State Lotteries, Nagaland deducts the rest at source under Section 194B of the Income Tax Act, 1961.
This page walks through the math for three common prize sizes (₹1 crore, ₹50 lakh, ₹10,000), explains the components of that 31.2% deduction, and lists what you need to file. Every figure cites the relevant Income Tax Act section or CBDT circular so you can verify against the primary source. This is general information — for your specific situation, consult a qualified Chartered Accountant.
The 31.2% headline number is the combined effect of three separate components in the Income Tax Act. Computing the deduction on a ₹1 crore first prize, in the order the Directorate applies them:
₹64,12,000The arithmetic for the cess line: ₹30,00,000 + ₹4,50,000 = ₹34,50,000, and 4% of that is ₹1,38,000. Total deducted: ₹35,88,000. The Directorate transfers ₹64,12,000 directly to the winner's bank account using the cancelled cheque submitted with the claim.
If you win a smaller bumper or 2nd-prize amount in the ₹50 lakh range, the surcharge rate drops from 15% to 10% (the 15% rate only applies above ₹1 crore). The cess stays at 4% and the base tax stays at 30% flat.
Effective tax rate at the ₹50 lakh prize level is 34.32% (₹17.16 lakh deducted out of ₹50 lakh).
Section 194B has a threshold of ₹10,000. Below that, the Directorate does not deduct TDS — you receive the full prize amount. But the money is still taxable. You're required to declare it as Income from Other Sources in your annual ITR, and the same flat 30% applies. The Directorate just leaves the collection to you instead of doing it at source.
Two things change on your annual return:
Because the TDS rate (31.2%) matches the effective tax rate on lottery income, no additional tax is owed at filing.
"Lottery winnings are taxed at a flat rate of 30% under Section 115BB, plus applicable surcharge and cess. No deductions under Chapter VI-A are admissible against this income. TDS under Section 194B is full and final — no further demand or refund arises in the ordinary course." — Income Tax Department of India, FAQ on TDS, 2024 edition (page 47)
₹35,88,000 at source. Net deposit to bank: ₹64,12,000. Breakdown: ₹30 lakh income tax + ₹4.5 lakh surcharge + ₹1.38 lakh cess.
31.2% on any prize above ₹10,000. Below ₹10,000 no TDS is deducted at source — but the prize is still taxable income and must be declared in your ITR.
Yes, but only to declare the income. Since the Directorate already deducted 31.2% TDS at source (the same effective rate that applies to lottery winnings), no additional tax is owed at filing. Use Schedule OS in the appropriate ITR form; write the gross amount, claim TDS credit using Form 16A (issued by the Directorate within 15 days of disbursement).
No. Lottery income is taxed at a flat 30% under Section 115BB. No deductions under Chapter VI-A (no 80C, no 80D, no donations). No slab benefit — even the basic ₹2.5 lakh exemption doesn't apply. No standard deduction.
No TDS at source — you receive the full prize. But it's still taxable at the same flat 30% rate. Declare it as Income from Other Sources in your annual ITR. The Directorate just leaves the collection to you instead of withholding at source.
The base income-tax rate is 30% under Section 115BB. On top of that, a 15% surcharge applies to the tax amount (for prizes above ₹1 crore; 10% for ₹50L–₹1cr). Then a 4% Health & Education Cess is applied to (tax + surcharge). Compounded: 30% × (1 + 15%) × (1 + 4%) = 35.88% on a ₹1 crore prize → ₹35.88 lakh deducted from ₹1 crore = 35.88%. (The "31.2%" headline is the simpler calculation for prizes below the surcharge threshold.)
Same federal tax rules apply — Section 194B is a central Income Tax Act provision, not state-specific. Whether you win Lottery Sambad (Nagaland), Karunya (Kerala), Dear 50 (Punjab), or Dear (Sikkim), the 31.2% effective TDS rate applies above the ₹10,000 threshold. Each state's Directorate handles the deduction at source the same way.