Tax deduction on gaming winnings applies to qualifying lottery, game, gambling and betting payments, with safeguards for in-kind prizes.

Section 393(3), serial number 1, requires tax deduction at source by any person paying winnings from lotteries, crossword puzzles, card games or other games, and gambling or betting, excluding online-game winnings. Tax is deductible at the rates in force where winnings from a single transaction exceed Rs. 10,000. For winnings wholly in kind, or partly in cash and kind where the cash component is insufficient for the tax liability, the payer must ensure that tax has been paid before releasing the winnings.

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