TDS on lottery winnings requires withholding at basic rate with thresholds and special rules for in kind and online prizes. Deduction of tax at source covers winnings from lotteries, games and similar prize competitions, with the payer as deductor and any recipient as deductee. Tax is deductible at the time of payment, including on each instalment when paid, and in-kind prizes require assurance that tax is discharged before release if cash is insufficient. Game shows and electronic competitions are included. The withholding is at the basic prescribed rate without surcharge, subject to statutory threshold rules and exclusions for agent commissions; reduced-rate relief is excluded for online game winnings.