Tax deduction at source on lottery winnings requires prescribed withholding, reporting, and remittance obligations for payers. Deduction of income-tax at source is required on lottery and crossword puzzle winnings exceeding Rs.1,000 with prescribed flat withholding rates for individuals and companies, subject to application of higher tax if the winnings as total income attract higher liability. Withholding applies to payments on or after the financial year commencement and on instalment payments; cash-plus-kind prizes are taxed on aggregate value while prizes only in kind are not withheld on. Payers must round tax to nearest rupee, remit deductions promptly, issue prescribed payment certificates, file quarterly deduction statements, and accept recipient certificates authorising lower or nil deduction.