MANAGEMENT

Detailed explanation-1: -As per Section 194B of The Income-tax Act, 1961, if the prize money exceeds ₹10, 000, then the winner will get the prize money after the deduction of TDS online at 30% (if the winner is Resident), at 30% Surcharge (if applicable), 4% Educational Cess (if the winner is Non-Resident).

Detailed explanation-2: -A TDS of 31.2% is charged irrespective of the deductions you are eligible for. The Income Earned: While the income tax liability on your regular income would depend on the tax-slab you are part of, all the winnings from lottery and game shows attract a non-refundable TDS of 31.2%.

Detailed explanation-3: -You need to know that you can’t claim the entire jackpot prize because all forms of gambling are taxable by Philippine law. Based on the new Tax Reform Acceleration and Inclusion (TRAIN) Law, lottery winning P10, 000.00 or more are subject to 20% tax.