New Delhi, Aug. 25 -- With the explosive growth of online gaming platforms and means, along with the rising participation in lotteries and prize contests, the taxman has sharpened its focus on raking in large sums of money from such activities. The reason for the same is greed and the myth of quick money.

Unlike regular salary or business income, these earnings are treated as a special income category. It also comes with stricter provisions and limited reliefs for taxpayers. Here are five things to know about tax on gaming and lottery prizes:

All wealth creation or winnings from lotteries, betting, gaming, crosswords, or horse races are taxed at a flat rate of 30% under Section 115BB of the Income Tax Act. This flat rate applies irrespe...