<h1>Withholding on lottery winnings: statutory tax rate enforced and authorities pursue enforcement and recoveries against distributors.</h1> Payers of lottery prizes must deduct tax at source under Section 194B and winnings are taxed under Section 115BB at the statutory rate specified by the Finance Act, 2023, with no deductions allowed; prize disbursements through formal banking channels have been recommended to address money laundering and related risks. The Income Tax Department pursues enquiries, searches, seizures, surveys, assessments and consequential actions on credible information of direct tax violations, and authorities have detected multiple GST non compliance cases by lottery distributors, resulting in recoveries including interest and penalties.