Join our newsletter to stay updated on Taxation and Corporate Law. ON WHICH AMOUNT TAX IS REQUIRED TO BE PAID If you gamble in online casinos, please make sure that you file return of income. OUR COMMENT
RATE OF TAX Betting or gambling is illegal in most of India. But there is no law that makes online betting an illegal activity. Surveys conducted in 2020 have revealed that there are approximately 300 million online gamers in India and the number is going to increase rapidly in coming years. With widespread use of internet casinos companies have started casino websites offering an enthralling environment to play in. There is much litigation on gambling but income tax does not restrict anyone to earn from litigated source. It only says “Please Pay Tax”. Therefore online gambling is also taxable. The above comments do not constitute professional advice. The Author can be reached at [email protected] or visit website www.financialtreecompany.com. My name is CA Divya Agrawal and I am Practising Chartered Accountant, CEO and Founder of FINANCIAL TREE COMPANY (An online return filing and Tax Consultancy Company). We also upload educational videos in You tube and name of our channel is FINANCIAL TREE COMPANY. Our aim is to help people in improving their financial health by spreading knowledge and love. Stay Financially Fit and Healthy. Tax is required to be paid on winnings amount. It is not required to be paid on amount of transactions entered. For Eg: Mr. Anish plays online casinos and has done transaction of 1crore but has earned only 10 lacs. Therefore tax is required to be paid on 10lacs and not 1 crores.
TDS ON PRICE MONEY RECEIVED Suppose Mr. Anish wins a Car from Gambling or betting then prize distributor has to make sure that TDS has been paid deducted on the basis of market value of Car before handling the Car to Mr. Anish. The tax burden can be beard either by Prize Distributor or Mr. Anish. Copyright © TaxGuru. All Rights Reserved. Maintained by V2Technosys.com Your email address will not be published. Required fields are marked *