Won the ₹1 Crore Dear Lottery Jackpot? What You Actually Take Home
How much of a ₹1 crore Dear lottery first prize you keep in 2026: 30% TDS under section 393(3), surcharge, cess, worked figures for every prize tier and the ₹3 crore bumper.
The ₹1 crore first prize is paid after 30% TDS, so about ₹70 lakh reaches your bank account (less any commission or charges the state deducts first). That isn't the end of it. Lottery winnings are taxed at a flat 30% with no deductions, plus a 10% surcharge (your total income is above ₹50 lakh) and 4% cess. If the prize is your only income for the year, the full tax is ₹34.32 lakh, so you keep ₹65.68 lakh and owe about ₹4.32 lakh more when you file your return. Prizes of ₹10,000 or less have no TDS but are still taxable.
What "jackpot" means on a Dear result
News headlines call the Dear first prize the "₹1 crore jackpot". It's the 1st prize on every regular 1 PM, 6 PM and 8 PM draw: one ticket per draw, matching both the series code and all five digits. Bumper draws have bigger first prizes — ₹3 crore on each bumper drawn in 2026.
If your number matches the 1st prize but your series doesn't, you have the ₹1,000 consolation prize, not the jackpot. Our result sheet guide explains the difference.
The rules for 2026
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. The lottery rules carried over with new section numbers.
| Rule | What it means for you |
|---|---|
| TDS of 30% under section 393(3) (Table, Sl. No. 1) — formerly section 194B | The lottery deducts 30% before paying you |
| Threshold: more than ₹10,000 in a single transaction | A prize of ₹10,000 or less is paid without TDS |
| Flat 30% rate on winnings | Not your slab rate — even if your other income is nil |
| No deductions, no basic exemption | You can't offset ticket costs, and the ₹2.5–4 lakh tax-free limit doesn't apply to winnings |
| Surcharge on the tax, based on your total income | 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore (higher above ₹5 crore under the old regime) |
| Health and Education Cess of 4% | On tax plus surcharge |
TDS is a deduction at source, not your final tax. The lottery deducts 30%; some payers also deduct the 4% cess at the same time. Whatever surcharge and cess aren't covered by the deduction, you pay yourself.
The ₹1 crore prize, step by step
Assume the ₹1 crore prize is your only income for the year and nothing else is deducted before TDS.
| Step | Amount |
|---|---|
| Prize | ₹1,00,00,000 |
| TDS deducted by the lottery (30%) | − ₹30,00,000 |
| Credited to your bank account | ₹70,00,000 |
| Tax at 30% | ₹30,00,000 |
| Surcharge at 10% of tax (total income is above ₹50 lakh, not above ₹1 crore) | ₹3,00,000 |
| Cess at 4% of tax + surcharge | ₹1,32,000 |
| Total tax | ₹34,32,000 |
| Already paid as TDS | − ₹30,00,000 |
| Still to pay | ₹4,32,000 |
| What you keep | ₹65,68,000 |
So the real take-home on a ₹1 crore Dear prize is about ₹65.7 lakh — roughly two-thirds.
If you have other income
Your other income for the year adds to the total that decides the surcharge. If it takes your total income above ₹1 crore, the surcharge rises to 15% on your whole tax bill, not just on the extra. A rule called marginal relief limits the jump so that you never pay more extra tax than the income that crossed the line. A chartered accountant can work out the exact figure for your income.
If commission or charges are deducted first
Nagaland pays large prizes by RTGS or demand draft after deducting "applicable commission or charges", as reported in its claim rules. Kerala, by comparison, deducts the selling agent's commission: a ₹25 crore Onam bumper in 2023 was reported to come to about ₹14 crore after commission and taxes.
When something is deducted before payment, TDS is worked out on the amount after that deduction. Every ₹1 lakh deducted first lowers your TDS by ₹30,000 and your bank credit by ₹70,000. Check the payment advice the Directorate sends you: it should show the gross prize, any deduction, the TDS and the net amount.
What every Dear prize is worth after tax
| Prize | Amount | TDS? | Full tax (30% + 4% cess, + surcharge where it applies) | You keep |
|---|---|---|---|---|
| 5th | ₹120 | No | ₹37 | ₹83 |
| 4th | ₹250 | No | ₹78 | ₹172 |
| 3rd | ₹500 | No | ₹156 | ₹344 |
| Consolation | ₹1,000 | No | ₹312 | ₹688 |
| 2nd | ₹10,000 | No — not more than ₹10,000 | ₹3,120 | ₹6,880 |
| 1st | ₹1,00,00,000 | Yes, ₹30 lakh | ₹34,32,000 (10% surcharge) | ₹65,68,000 |
| Bumper 1st (2026) | ₹3,00,00,000 | Yes, ₹90 lakh | ₹1,17,00,000 (25% surcharge) | ₹1,83,00,000 |
The figures for the 1st and bumper prizes assume the prize is your only income. The small prizes are paid in full at the shop, but they are still income from winnings. Tax on them is due when you file, at the same flat rate.
The ₹3 crore bumper, worked out
A ₹3 crore prize puts your total income above ₹2 crore, so the surcharge is 25%:
- TDS: ₹90,00,000 → ₹2,10,00,000 credited
- Tax: ₹90,00,000 + surcharge ₹22,50,000 = ₹1,12,50,000
- Cess at 4%: ₹4,50,000 → total tax ₹1,17,00,000
- Still to pay: ₹27,00,000
- You keep: ₹1,83,00,000 — 61% of the headline prize
The balance due after TDS is large, which is why big winners need to plan for it straight away.
A quick way to estimate any prize
If the prize is your only income for the year, the share you lose to tax depends only on which surcharge band the prize falls in:
| Prize (your only income) | Surcharge | Total tax rate | Example |
|---|---|---|---|
| Up to ₹50 lakh | None | 31.2% (30% + 4% cess) | ₹50 lakh → keep ₹34.4 lakh |
| ₹50 lakh to ₹1 crore | 10% | 34.32% | ₹1 crore → keep ₹65.68 lakh |
| ₹1 crore to ₹2 crore | 15% | 35.88% | ₹2 crore → keep ₹1.28 crore |
| ₹2 crore to ₹5 crore | 25% | 39% | ₹3 crore → keep ₹1.83 crore |
Take-home = prize × (1 − total tax rate). Just above each band edge, marginal relief can lower the bill slightly. If you have other income, the band is set by your total income, not the prize alone, so your rate on the prize can be higher than this table shows.
After the money arrives
- Check the TDS credit. The TDS should appear against your PAN in your Annual Information Statement (AIS) on the income-tax portal. If it doesn't, ask the Directorate for the TDS certificate.
- Pay the balance early. The extra surcharge and cess are due as advance tax for the year you win. Paying them in the next advance-tax instalment generally avoids interest. Don't spend the full bank credit as if it were yours.
- Report the winnings in your return. Lottery winnings go under "income from other sources", taxed at the special 30% rate, separately from your slab income.
- Keep every paper. The claim form copy, payment advice, TDS certificate and a photocopy of the ticket.
Claiming the ₹1 crore
You can't collect a 1st prize at a shop. Prizes above ₹10,000 are claimed from the state that ran the draw — Nagaland for 1 PM and 8 PM, Sikkim for 6 PM. For Nagaland:
- Submit the claim within 30 days of the draw.
- Send the claim form with the original ticket, PAN and Aadhaar, bank details with a cancelled cheque, three passport-size photographs, attested photocopies and an affidavit of ownership.
- Submit to the Director, Nagaland State Lotteries, Kohima, or to one of Nagaland's nodal offices (Kolkata, Ludhiana, Gangtok, Byrnihat, Mumbai).
A PAN is essential: the Directorate asks for it, and without it the TDS credit can't reach your tax record. The full checklist, with addresses, is in our prize claim guide.
Mistakes that cost winners money
- Treating ₹70 lakh as the final figure. About ₹4.3 lakh more is due on a ₹1 crore prize, and far more on a bumper.
- Ignoring small prizes. A ₹10,000 2nd prize is paid without TDS, but ₹3,120 of tax is still due on it.
- Paying someone to "release" the prize. Tax is deducted from the prize by the lottery. No real lottery asks a winner to pay tax or fees in advance — that request is always a scam. Report it on 1930.
- Missing the 30-day window. Under the Lotteries (Regulation) Act, unclaimed prize money becomes the state's property.
18+ only. This guide explains general tax rules for resident individuals as of October 2026. It is not tax advice — your figure depends on your total income and any deductions made before payment, so confirm with a chartered accountant. Lottery Sambad Today is not affiliated with the Nagaland or Sikkim State Lotteries.