Lottery – Section 2(49)(C) | Income-tax Act, 2025 vs 1961

§ 2(49)(C) · Income-tax Act, 2025

Lottery

ITA 2025 · 2(49)(C) ITA 1961 · 2(24)(ix)(i)
Definition — Section 2(49)(C)

This is a sub-definition within the definition of "income" under Section 2(49). "Lottery" includes winnings from prizes awarded to any person by draw of lots or by chance or in any other manner, under any scheme or arrangement called by any name. The broader income category under Section 2(49)(n) includes winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort, or from gambling or betting of any form or nature.

Act Comparison
Income-tax Act, 2025
2(49)(C)
Lottery
Income-tax Act, 1961
2(24)(ix)(i)
Lottery
Key Points
  • Sub-definition within the definition of "income" under Section 2(49) of the 2025 Act
  • Maps to the Explanation to Section 2(24)(ix)(i) of the 1961 Act — identical in both Acts
  • Lottery winnings are taxed at a flat rate under the 2025 Act — TDS applicable at source where winnings exceed the prescribed threshold
💡 Practical Note

Even informal lottery pools or unofficial prize draws — if they result in winnings awarded by draw of lots or by chance — are covered under this definition and fully taxable. TDS applies at source where winnings exceed the prescribed threshold.

Published by Simplified Tax India — Clear, section-wise comparison of Income-tax Acts. ← Back to Section 2 Definitions Table
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