Do winnings from a Casino get taxed in India? A look at Tax Implications

winnings - Casino - Tax Implications - Taxscan

A casino is a facility for certain types of gambling. Casinos are often built near or combined with hotels, resorts, restaurants, retail shopping, cruise ships, and other tourist attractions.

Due to the low cost of data and easy access to smartphones, the online casino industry has evolved tremendously over the last decade. The continuing growth in casino gambling in India has led to more interest from Best Online Casino India.

Income Tax Implication on Online Casino

Section 115BB of the Income Tax Act details the tax implications on income earned from online betting. Per this provision, the winning amount attracts a tax at a flat rate of 30% excluding cess.

Income Tax Implication on Offline Casino

The tax that is paid on winnings from any form of gambling is covered by Section 194B of the Income Tax Act. Any winnings that a person is lucky enough to get are subject to a 30% tax. There is also a surcharge of 10% of this tax. There are no deductions or exemptions which can be applied to the tax.

Implication of Facilitators of Casinos

The person responsible for paying to any person any income by way of winnings from any lottery or crossword puzzle, card game and other game of any sort in an amount exceeding Rs.10,000 shall, deduct income-tax thereon at the rates in force.

This means that the player must file his earnings as tax deducted at source when filing his annual taxes.

Is there any Income Tax Exemption?

The Benefits like house rent allowance, leave travel concession, home loans rebate, etc duly detailed under the various sections of the Income Tax Act cannot be used on the taxable amount of online betting. Moreover, the tax slab rates also do not apply to this income.