The Bodoland Lottery is a legal, authorized game in India, especially in Bodoland and Neighboring States. It is operated by the Directorate of the Bodoland Territorial Council under the Assam State Lottery Scheme, and is legal under the Lotteries Regulation Act, 1998. There are multiple lottery series in Bodoland, each with a different prize structure. Every prize structure comes under the Indian Lottery Regulation, and it comes under Section 56(2)(ib). Therefore, the final prize money will be credited to the Participants after the tax amount is deducted. No exemptions or deductions apply to lottery income.
Tax deduction on bodoland lottery in Assam
Under the Income Tax Act, 1961 (Section 115BB), any type of lottery winnings is fully taxable. The Bodoland Lottery is regulated under income tax rules. Hence, it falls under the category of income from other sources. The tax will be calculated regardless of whether the prize is small or large.
A flat 30% TDS (Tax Deducted at Source) applies to Lottery Winnings Under Section 115BB.
If a participant wins 10,000 or more, the BTC deducts the 30% TDS from the total amount. The deduction amount is directly transferred to the Income Tax Department.
Apart from the 30% TDS, a 4% CESS (Health and Education CESS) is also deducted from the Prize money. Therefore, the TDS might increase by 31.2%
Suppose you win ₹10,00,000 in the Bodoland Lottery (Full prize amount)
TDS @30% = ₹3,00,000 (Flat rate under Section 115BB)
Health & Education Cess (4%) = ₹12,000 (Health & Education Cess)
Total Tax Deducted = ₹3,12,000 (Effective ~31.2%)
Net Prize Money Received = ₹6,88,000 ( Amount received after TDS)
Still, you must declare ₹10,00,000 as income in your ITR.
You cannot claim the tax deduction under the 80C and 80D Sections. These Sections cannot be claimed against lottery income.
If a lottery prize is very high, surcharges are applied, and if your income exceeds
10% extra if income > ₹50 lakh but ≤ ₹1 crore
15% extra if > ₹1 crore but ≤ ₹2 crore
25% extra if > ₹2 crore but ≤ ₹5 crore
37% extra if > ₹5 crore.
The effective rate can reach up to ~42.74% for high-value winnings.
The lottery organizer, Bodoland Territorial Council (BTC), deducts TDS before payout and deposits it with the government. They issue Form 26AS/Form 16A (TDS certificate) to the winner.
Donating the Lottery Prize amount (Full) to any charity (to a registered entity under Section 80G) may be exempt. Still, partial donations do not reduce the tax on the retained amount.