Income received from winning lotteries, crosswords, puzzles, card games, horse races, gambling, betting or any other games is known as casual income. Casual Income is taxed at a flat rate of 30%. No expenditure is allowed as a deduction from casual income. Also, the benefit of the basic exemption limit is not available for casual income.
TDS @ 30% is deducted u/s 194B in case of winnings from lotteries if the amount exceeds Rs. 10,000/-.
TDS @ 30% is deducted u/s 194BB in case of income received from racehorses.