Are Winnings from Online Betting Taxable in India?

Are Winnings from Online Betting taxable in India? In India, online gambling has been tried by 40% of internet users.

This has undoubtedly been made feasible by the widespread availability of the Internet and the expansion of online betting choices.

As internet use grows in India, more and more people are turning to online betting services, which lets users wager on well-known athletic events both domestically and internationally with the chance to earn money.

Although most people who engage in internet betting only do it as a hobby for fun, online betting is indeed a way to earn some good money if you do it properly. 

Despite the ambiguity of the regulations governing internet gambling in India, it is still feasible for Indian gamers to place wagers safely and lawfully.

Now you might be wondering, are winnings from online betting taxable in India? 

Is it subject to standard income tax or a different tax bracket? In this article, we’ll talk about that.

It is crucial to remember that according to the Income Tax Department, gains from internet gambling are entirely taxable.

What are the tax rates for Online Betting in India?

Are Winnings from Online Betting taxable in India? Yes, As a general rule, all revenue and earnings from online casino gaming and betting will be subject to a flat 30% taxation even without cess. 

It totals 31.2% once the 4% cess is added. (Source – ET)

The Revenue Tax Act Article 194B provides the specifics, essentially stating that any income obtained through a crossword, lottery, deck game, or other game will be subject to a 31.2% tax.

There is a 4% Health and Education Cess (surcharge). It is not based on income and is applied to the owed tax. Naturally, it funds national objectives in health & education and is owed by everyone who owes income tax.

On what amount tax needs to be paid for online betting?

According to Indian income tax regulations, a 30% tax must be subtracted from winnings over Rs 10,000 before it can be paid out. 

Games of chance are subject to a 28% GST rate, and the skill gaming sector is subject to an 18% GST on commissions or gross gaming income (GGR).

What deductions are applied to what amount?

Your entire income from such an online casino is considered when calculating your yearly income. 

Every Indian state taxes this revenue entirely. 

Your annual tax return must include a declaration of this income under the category “Income from other sources.”

Section 115BB of the Income Tax Law covers all tax information relating to such income in full. The earnings on winnings from gambling, casinos, and other comparable sources are described in this section.

Regardless of the tax band the taxpayer is in, online gambling winnings are charged at a fixed amount of 30%. 

There are no exemptions that apply to this sum. These earnings must be disclosed by the law when completing your annual taxes.

Upon exceeding INR 50 Lakhs ($57,400 or INR 50,00,000), a 10% surcharge is added to the standard tax rate, bringing the overall tax rate to 33%;

Over INR 1 Crore (1,000,000 or Euro 115,000), the surcharge increases to 15% of the rate of taxation, effectively boosting the tax rate to 34.5%;

It is significant to remember that a cess is imposed in addition to this tax. 

After cess, the net rate equals around 31.2%. The cess is 4% and is applied to the amount of tax that must be paid by those whose income is subject to income tax.

As a component of the Tax Reduced as Source (TDS) regulation, the tax value is immediately subtracted when a player requests a withdrawal from a gambling operator legally permitted to do business and pay taxes in India.

For example, if you win Rs. 20,000 on a rummy website, you will earn Rs. 13 760 as a result of the winning amount’s tax break TDS of 31.2% per section 194B

Income tax implications: Are Winnings from Online Betting taxable in India?

Over the past few years, a lot of economic and technical advancements have taken place. 

India, as we all know, provides a lot of economic and scientific contributions to the entire Asian continent, although moving relatively slowly in legislative and administrative concerns. 

With the pinnacle of smartphone adoption also comes the emergence of payment options such as UPI which make it simpler for Indian customers to shop and access entertainment.

Now Are Winnings from Online Betting Taxable in India? Yes, Gaming at casinos, both online and offline, is in a few states is secure and the taxes have to be paid.

Numerous risk-free casinos have previously been set up and successfully serve Indian customers. 

Given that native gamblers used to experience issues making and receiving payments, payment/withdrawal efficiency is essential. 

The Indian online gaming industry already has well-established payment options that are seamlessly integrated.

What does the law say about Online betting?

Different states in India have different laws regarding gambling and online casinos. Often people wonder Are Winnings from Online Betting taxable in India?

In 2010, Sikkim planned to offer three online gambling licences. 

By 2022 online gambling will only be officially legal in the states of Goa, Daman and Sikkim. 

Sikkim also permits an online lottery, which takes bets from players throughout India. 

Even though Indian casinos cannot promote or have sites that promote online gambling games such as casinos, sports betting, and bingo.

It is not illegal for non-Indian casino companies to have sites that focus on Indian players. 

The only legal requirement is that the offshore casinos have to offer Indian Rupees as a payment method for Indian players.

In the modern world, when everyone is connected via the web, a person who sits in India can place a wager on a website owned by a foreign company. In India, no specific law governs or forbids such practices.


Whatever the situation, we constantly advise you to wager sensibly. And before the authorities come pounding on your door, make it a priority to pay income tax on your winnings. 

Because the odds are not that far off at 31.2%, especially if the prizes reach five figures or more, this is not a great stretch. 

By doing this, you adhere to all legal requirements and continue to enjoy gambling. Hope the query around: Are Winnings from Online Betting taxable in India? is resolved now.

Also, check out Casino in Panaji: An Amazing Experience

Leave a Comment

Your email address will not be published. Required fields are marked *