In recent years, the practice of logging onto an online casino and indulging in a spot of gambling has become more prevalent across India. The widespread availability of casino websites – including premium options from overseas operators, such as ライブカジノ (the exciting live casino game offered by Casino.me) – has made gambling more popular than ever in the country.
Aware of the lucrative possibilities in this burgeoning industry, the Indian government has introduced strict regulations on tax deductions from any casino winnings earned by avid players. While this is bad news for those who might see their income diminished as a result, the good news is that any losses could be offset by taking advantage of perks, promotions and bonuses offered by the casinos in question.
What the law says on taxation of gambling income
The Indian people have long held an affinity for gambling and casino games. The nature of the relationship between the Indian government and the practice, on the other hand, has been altogether less convivial. To this day, the legislation surrounding the online casino industry in India is somewhat confusing – although the laws regarding the payment of tax on winnings are straightforward enough.
According to the International Comparative Legal Guide (ICLG), all earnings over 10,000 INR accrued from lotteries, crossword puzzles, card games or any other game-based activity (including all those offered by online casinos) is subject to a base taxation rate of 30%. This figure is not inclusive of surcharge and excess and incorporating those additional costs into the equation results in a final taxation rate of approximately 31.8%.
That might seem like quite a steep stipend that successful gamblers must deliver to the government. After the euphoria of experiencing a big win at an online casino, it can be quite sobering to realise that almost a third of the total will be delivered into the coffers of the Indian government, rather than your back pocket.
Sweetening the pill
However, many casino operators are aware of how big a blow that can be to their Indian customers, which is why they have taken steps to offset those losses. For example, there are some truly astounding jackpots on offer in India, which means that even deducting a third from their total will still give lucky winners a life-changing amount of money.
Aside from astronomical jackpots, other casino operators run loyalty schemes and programmes. The aforementioned Casino.me offers one such cashback incentive, whereby a percentage of all monies deposited and wagered by an account holder will be set aside into their “Cash Me” account. This gives players an opportunity to recoup any lost monies and maximise the funds available to them.
Finally, there are a plethora of bonuses and promotions which run periodically and give gamblers another way in which they can access additional spending money. Of course, you should be aware that these offers generally come with conditions which must be complied with before any winnings can be withdrawn – but they do offer an excellent way to offset the deductions made to your pot due to taxation.
With the Indian government claiming just under a third of all winnings above 10,000 INR, gamblers across the country might feel aggrieved at just how much of their hard-earned cash they have to give up. Luckily, many casino operators are aware of this situation and offer a variety of perks in a bid to alleviate the financial toll that taxation brings for their customers.
