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Guide · TDS

Section 194B — TDS on Lottery &
Game Winnings (30%)

A flat 30% TDS applies to lottery, crossword, card-game and game-show prizes over Rs 10,000 — with no basic exemption and no deductions. Here are the current rate, threshold, related sections and how to report the income.

TaxClue Editorial Desk Updated 18 August 2026 5 min read 16 FAQs answered
Updated for FY 2025-26 Reviewed by a CA Single-win Rs 10,000 rule
Quick Answer

Section 194B requires the prize payer to deduct 30% TDS on winnings from a lottery, crossword, card game or game show when a single win exceeds Rs 10,000 (this single-transaction test replaced the old yearly-aggregate rule from 1 April 2025). There is no basic exemption and no deduction — the whole prize is taxed at 30% (plus surcharge and 4% cess) under Section 115BB. Online-game winnings fall under Section 194BA and horse races under Section 194BB.

TDS rate 30%
Threshold > Rs 10,000
Exemption None
Deductions None
At a glance

Winnings TDS — Section & Rate Table

Every common type of winning, the section that governs it, the TDS rate and the threshold for FY 2025-26.

Type of winningSectionTDS rateThreshold
Lottery / crossword prize194B30%> Rs 10,000 (single win)
Card game / game show (offline)194B30%> Rs 10,000 (single win)
KBC / reality-show prize194B30%> Rs 10,000 (single win)
Lucky draw / bumper prize194B30%> Rs 10,000 (single win)
Online gaming (Dream11, Rummy, etc.)194BA30%No threshold · on net winnings
Horse race winnings194BB30%> Rs 10,000 (single win)

From 1 Apr 2025 the Rs 10,000 test is per single transaction (per prize), not yearly aggregate. Under the Income-tax Act 2025, Section 194B is renumbered to Section 393(3) Sl.1 from AY 2026-27 — the rate and rules are unchanged.

No exemption limit — TDS from rupee one of the prize

Unlike salary or interest, there is no basic exemption and no slab benefit on winnings. Once a single prize crosses Rs 10,000 the entire amount is taxed at 30% (not just the excess), and you cannot set off any expense, loss or Chapter VI-A deduction (80C, 80D, etc.) against it.

Section 115BB

How Much Tax You Actually Pay

Winnings are taxed at a flat 30% under Section 115BB, over and above your normal income. Surcharge (based on total income) and 4% health & education cess are added on top, so the effective rate rises with income:

Total income bandSurchargeEffective rate on winnings
Up to Rs 50 lakhNil31.2%
Rs 50 lakh – Rs 1 crore10%34.32%
Rs 1 crore – Rs 2 crore15%35.88%
Above Rs 2 crore25% (capped for 115BB)37.5%+

Surcharge on winnings income is capped at 15% under the special-rate proviso; figures include 4% cess. TDS at source is a flat 30% — any surcharge/cess balance is settled through your ITR.

Worked example

Win Rs 1 Crore — What You Take Home

30% TDS at source

Prize wonRs 1,00,00,000
TDS u/s 194B @ 30%Rs 30,00,000
Amount receivedRs 70,00,000

Final tax in the ITR

Tax @ 30%Rs 30,00,000
Surcharge @ 15%Rs 4,50,000
Cess @ 4%Rs 1,38,000
Total tax on prizeRs 35,88,000

The organiser deducts Rs 30 lakh before paying you. Because your total income crosses Rs 1 crore, surcharge and cess push the real cost to about Rs 35.88 lakh, which you settle when you file your ITR. No 80C/80D or other deduction can reduce this prize tax.

Won a lottery, KBC or game-show prize? Get the TDS credit and ITR right.

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Non-cash prizes

Prize in Kind — Car, House or Gadget

When the prize is a car, flat, gold or a holiday instead of cash, Section 194B still applies. Before releasing the prize the payer must ensure 30% TDS on the market value is paid — either the winner pays the tax in cash, or the payer bears (grosses up) the tax.

Prize declaredOrganiser values the prize at FMV
→
TDS check30% of FMV must be paid
→
Winner / payerWinner pays cash, or payer grosses up
→
Form 16A + ITRWinner claims TDS credit

Winner pays the TDS

Car value (FMV)Rs 10,00,000
TDS @ 30%Rs 3,00,000
Winner pays in cashRs 3,00,000

Organiser grosses up

Car value (FMV)Rs 10,00,000
Grossed-up value ÷ 0.70Rs 14,28,571
TDS @ 30%Rs 4,28,571
TDS borne by payerRs 4,28,571
TaxClue Insight

For a prize in kind, report the FMV as income and claim the TDS in your ITR. That FMV also becomes your cost of acquisition — useful if you later sell the car or property and need to work out capital gains.

Know the difference
194B

Lottery, games & prizes

  • Lottery, crossword, card game, game show
  • KBC, reality-show & lucky-draw prizes
  • 30% TDS when a single win > Rs 10,000
  • Taxed u/s 115BB — no deductions
vs
194BA

Online gaming — no threshold

  • Dream11, MPL, Rummy, poker, fantasy sports
  • TDS on net winnings (winnings − deposits)
  • 30% TDS with no Rs 10,000 threshold
  • Taxed u/s 115BBJ; 28% GST on deposits separately

Horse-race winnings have their own section — 194BB — with the same 30% rate and a Rs 10,000 single-transaction threshold; the bookmaker or race organiser deducts the tax.

In your return

How to Report Winnings in Your ITR

  • Report the gross prize under "Income from Other Sources"
  • Show it at the special 30% rate (Schedule OS / SI)
  • Claim the 194B/194BA/194BB TDS credit from Form 26AS / AIS
  • For a prize in kind, report the FMV as income
  • Do not set off any loss or deduction against winnings
  • Reconcile the TDS with your Form 26AS & AIS before filing
Even untaxed / illegal-platform winnings are reportable

If no TDS was deducted — say on an offshore betting app — the income is still taxable at 30% and you must disclose it. Undisclosed winnings can invite penalties, and foreign winnings are taxable in India for a resident.

Have TDS on winnings sitting in your Form 26AS? Claim the credit and file correctly.

File ITR with TaxClue →
Government sourcesAct & rates: incometax.gov.in · Section text: incometaxindia.gov.in · Single-transaction Rs 10,000 threshold: Finance Act 2025 (eff. 1 Apr 2025) · Tax rate: Section 115BB · Online games: Sections 194BA / 115BBJ · Horse race: Section 194BB · Income-tax Act 2025: 194B renumbered to Section 393(3) Sl.1 (from AY 2026-27)
People also ask

Frequently Asked Questions

Basics
What is Section 194B of the Income-tax Act?
Section 194B requires the person paying a prize to deduct TDS at 30% on winnings from a lottery, crossword puzzle, card game, game show or any similar game. It applies when a single win exceeds Rs 10,000. The prize payer (lottery organiser, TV channel, casino or game organiser) is responsible for deducting and depositing the tax before releasing the winnings.
What is the TDS rate under Section 194B?
The TDS rate under Section 194B is a flat 30% of the winning amount (plus applicable surcharge and 4% cess). There is no slab benefit and no basic exemption — once a prize crosses the Rs 10,000 threshold, the entire amount is taxed at 30%, not just the portion above Rs 10,000.
What is the threshold limit for TDS under Section 194B in FY 2025-26?
From 1 April 2025, TDS applies when winnings from a single transaction (a single prize) exceed Rs 10,000. Budget 2025 removed the earlier rule that looked at total winnings for the whole year. So multiple small wins below Rs 10,000 each are no longer aggregated for TDS — each single win is tested on its own.
Has the Section 194B threshold changed in Budget 2025?
Yes. Earlier, TDS was triggered when aggregate winnings in a financial year crossed Rs 10,000. From 1 April 2025 the test is per single transaction — TDS is deducted only when one win exceeds Rs 10,000. The 30% rate itself is unchanged.
Tax & Rate
What is the tax rate on lottery winnings in India?
Lottery and prize winnings are taxed at a flat 30% under Section 115BB, regardless of your income slab. With 4% cess the effective rate is 31.2%, and surcharge applies if your total income crosses Rs 50 lakh (about 34.32%) or Rs 1 crore (about 35.88%). No deduction or exemption can reduce this tax.
Can I claim deductions like 80C against lottery winnings?
No. Winnings taxed under Section 115BB do not qualify for any Chapter VI-A deduction (80C, 80D, 80G, etc.), the basic exemption limit, or the Section 87A rebate. You also cannot set off any expenses, business loss or capital loss against prize income. The full amount is taxed at 30%.
Is the basic exemption limit available on prize money?
No. The basic exemption limit does not apply to income taxed at the special 30% rate. Even if your other income is nil, prize winnings above Rs 10,000 are taxed at 30% from the first rupee. This is different from normal income, where the first few lakhs are tax-free.
Online & Other Games
How is TDS on online gaming winnings handled?
Online-game winnings fall under Section 194BA, not 194B. The platform deducts 30% TDS on net winnings (total winnings minus deposits) with no Rs 10,000 threshold — TDS applies on every net win, when you withdraw or at year-end. This covers Dream11, MPL, Rummy, poker and fantasy-sports apps, and the income is taxed at 30% under Section 115BBJ.
Is 194B the same as 194BA for online games?
No. Section 194B covers offline lotteries, crosswords, card games and game shows with a Rs 10,000 single-win threshold. Section 194BA, introduced from 1 April 2023, covers online real-money gaming, applies to net winnings, and has no threshold. Both deduct 30%, but the base and threshold differ.
Is TDS on horse-race winnings different from 194B?
Yes. Horse-race winnings are governed by Section 194BB, not 194B. The rate is the same 30% and the threshold is Rs 10,000 per single transaction. The bookmaker or race organiser deducts the tax, and the income is taxed at 30% under Section 115BB, just like a lottery.
Prize in Kind
What happens if the lottery prize is a car or other goods?
When the prize is in kind — a car, flat, gold or holiday — Section 194B still applies on the fair market value. Before releasing the prize the payer must ensure 30% TDS on the FMV is paid: either the winner pays the tax in cash, or the organiser grosses up and bears it. The winner reports the FMV as income and claims the TDS credit in the ITR.
Who pays the TDS when the prize cannot be split — like a house?
For an indivisible prize in kind, the law requires the tax to be paid before the prize is handed over. In practice the winner deposits 30% of the FMV in cash, or the organiser grosses up the prize value and pays the higher TDS from its own funds. Either way, the winner gets a Form 16A / TDS certificate to claim the credit.
Reporting
How do I show lottery or game-show winnings in my ITR?
Report the gross winnings under "Income from Other Sources" and tax them at the special 30% rate in the Schedule OS / Special Income section. Claim the TDS deducted under 194B/194BA/194BB from your Form 26AS and AIS. For a prize in kind, report its FMV. Do not net off any expense or deduction against the winnings.
Are winnings taxable if no TDS was deducted?
Yes. Even if the payer did not deduct TDS — for example on winnings below Rs 10,000 or from an unregulated platform — the income is still taxable at 30% and must be disclosed in your ITR under Income from Other Sources. Not reporting it can attract interest and penalties.
Are foreign lottery or gambling winnings taxable in India?
Yes, for a resident of India. Winnings from a foreign lottery, casino or betting site are taxable in India at 30% under Section 115BB even if tax was paid abroad; you may claim foreign tax credit where a treaty allows. The income must be disclosed in the ITR, and undisclosed foreign winnings can invite penalties.
Can I get a refund of the 30% TDS on winnings?
The 30% TDS is generally the final tax on winnings, so it is rarely refundable — you cannot reduce it with deductions or the basic exemption. A refund arises only if excess tax was deducted (for example surcharge/cess mismatch) once you file your ITR and reconcile the TDS credit.
If you would rather not do it yourself

Related TaxClue services

Income Tax Return FilingReport winnings correctly and claim your 194B TDS credit.See the service →TDS Return FilingFor prize payers — deduct and file TDS on winnings on time.See the service →TDS Refund AssistanceRecover any excess TDS after reconciling Form 26AS & AIS.See the service →Crypto & Other IncomeHandle winnings, crypto and other special-rate income together.See the service →
TaxClue for winners & prize payers

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