The 60-second version
Section 194B requires 30% TDS on winnings from lottery, crossword, puzzle, or card game — organizer deducts before payout, no basic exemption.
194B is 30% flat — winnings taxed at special rate
Section 194B applies when a person wins from lottery, crossword, puzzle, or card game — 30% TDS on gross winnings.
Winnings taxed under Section 115BB at 30% in recipient hands — no deduction against winnings.
Agent commission: Section 194G guide.
Winnings tax stack
| Section | Rate | Applies to |
|---|---|---|
| 194B TDS | 30% | Lottery/puzzle winnings |
| 115BB tax | 30% | Income from winnings |
| 194G | 5% | Lottery agent commission |
| 194BA | 1% | VDA transfer |
194B sequence
Win declared
Organizer notifies.
30% TDS
Deducted from prize.
26AS
Verify credit.
ITR
Declare at 30%.
AIS match
Reconcile mismatch.
Flow
194B kit
- Prize letter.
- TDS cert.
- 26AS.
- PAN.
- ITR ACK.
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Foreign lottery
US Powerball or UK National Lottery wins are foreign income — Schedule FA + treaty, not 194B.
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Online fantasy sports?
Tax treatment evolving — verify CBDT guidance for skill vs chance.
Set off losses?
No — winnings cannot be offset by losses.
Gift to family?
Section 56(2)(x) may apply if gift exceeds threshold.
RNOR?
Indian lottery taxed from resident date.
vs 194G?
194B winner; 194G agent selling tickets.
TDS excess?
Refund in ITR if tax due below TDS.
Your tax year is already running.
RNOR status, exit timing, and DTAA benefits all depend on decisions you make before you land. Don't guess.