Nagaland is holding three big bumper lotteries on Saturday, July 4, all part of the sambad lottery. The draws take place at different times through the day, at 1 PM, 6 PM and 8 PM. Across all three lotteries, the top winner walks away with Rs 1 crore. The second prize is Rs 9,000 and the third prize is Rs 450, while a consolation prize of Rs 1,000 is also on offer.
The three draws are known as Dear Vision Morning (1 PM), Dear Elite Evening (6 PM) and Dear Lucky Night (8 PM).
The prize structure across all three draws
The prize money is identical for all three lotteries. The first prize is Rs 1 crore, the consolation prize is Rs 1,000, the second prize is Rs 9,000, the third prize is Rs 450, the fourth prize is Rs 250 and the fifth prize is Rs 120. The same breakdown applies to Dear Vision Morning, Dear Elite Evening and Dear Lucky Night alike.
The old names have now changed
These lotteries once went by different names. Dear Vision was earlier called Dear Narmada, while Dear Elite and Dear Lucky were known as Dear Donner and Dear Stork. The names may have changed, but the prizes and the rules have stayed exactly the same.
A lottery more than five decades old
Nagaland has been running legal weekly and bumper lotteries for over five decades now. It was established in 1972 and is owned and regulated by the state of Nagaland. The state itself runs, regulates, supervises and finances the entire operation.
How much tax you pay on winnings
Any amount won in a lottery is taxable, since it falls under the income from other sources category. Here is how lottery tax works in India:
- Flat tax rate: A flat rate of 30 percent applies to lottery winnings that exceed Rs 10,000.
- Health and Education Cess: A cess of 4 percent is charged on the tax amount, pushing the effective tax rate up to 31.2 percent.
- Surcharge: If the winnings cross a certain threshold, a surcharge may also apply, raising the overall tax rate even further.
This tax rate applies uniformly to every lottery winner, no matter how large the prize or what the winner's income level is. Regular income in India, by contrast, is taxed progressively, meaning higher earnings attract a higher rate. That progressive system does not apply to lottery winnings, which are taxed at a single flat rate regardless of the amount.
