Under section 194B of the Income Tax Act, a TDS of 30% tax is applicable on the prize money exceeding the amount of Rs. 10,000. The prize money could be an amount won in a Contest, lottery.
Note – At the time of filing income tax return, you must include prize money under ‘Income from other sources’. You must also submit the TDS certificate as proof that you have paid all the taxes due against the prize money.