There are online Cheaters be careful with them, they say you pay tax on Lottery Prize Money and collect money from you. It's a clear cheating.
When you have to pay tax, after you receive the amount. It's the duty of the winner after money comes into your account then pay tax through Income Tax Department from your bank account.
Indian Lottery the lottery company has to deduct the amount and pay balance to you.
According to the provisions of sections 194B and 194BB every person responsible for paying to any person, whether resident or non-resident, any income by way of winnings from lotteries or crossword puzzles or horse races in any amount exceeding Rs. 5,000 is required to deduct income-tax there from at the rates specified ...
Under Section 194B of the Income Tax Act, 30 per cent tax is deducted on any prize money in excess of Rs 10,000 and other winnings from games, lotteries etc. This is deducted at source (TDS). A Three per cent education cess is payable on the tax amount.