<s>[INST] If I win a lottery or prize money in a competition, am I required to pay Income-tax on it? [/INST] ​​Yes, such winnings are liable to flat rate of tax at 30% without any basic exemption limit. In such a case the payer of prize money will generally deduct tax at source (i.e., TDS) from the winnings and will pay you only the balance amount. </s>