Thiruvananthapuram: The State Government, as directed by the Centre, has started levying tax from lottery winners who win small prizes many times, summing up to more than Rs 10,000 as prize money in one year. The Centre's move is based on the Income Tax Rule 2023.
The Tax Deduction at Source (TDS) will be applicable to the lottery prize winners who win more than Rs 10,000 altogether through the lottery at different times. 30 percent of the prized amount will be collected as tax. Earlier, the tax was applicable only to prizes worth more than Rs 10,000.
The Centre decided to collect tax from small prize winners from last April to avoid losing tax on those who get small prizes. However, in Kerala, it was implemented a month later, in May 2023.
In the first phase, it has been decided to levy taxes on those who reach the lottery offices with the prize-winning tickets to collect the prize money. Meanwhile, lottery agents say such taxes have never been levied in this manner since the state lottery began 50 years ago.
Levying a 30 percent tax on small prizes would drastically affect the lottery in the State. The lottery scheme is already undergoing a severe crisis after imposing a 28 percent Goods and Services Tax (GST) on lotteries. The agents alleged that this 30 percent tax is being levied on top of it. The move must be withdrawn, the agents demanded.
