Why Gambling Is Illegal In India
Posted : admin On 4/4/2022Indian law prohibits physical gambling, but there are no laws that make online betting illegal activity. However, making sportsbooks is banned in India. It means that if a gambling site is situated in India, it will not be legal for use. To make it more specific, the Public Gambling Act 1867 prohibits any gambling activity in India. Gambling is totally illegal in most states and central administrated territories except Sikkim,Daman and Goa.The gambling is prohibited in India mostly due to moral characters as well as to curb corruption and money laundering.’’.
Leovegas: Leovegas Is not a very old platform because it has been in business since 2012. However, it is not relatively new either. Getting the “Brand of the Year” award in 2018 and the title “Casino Operator of the Year,” it is definitely a great choice for any online gambler out there. The site offers a welcome bonus that can go up to Rs.80, 000. They also have second and third deposit bonuses, live casino bonus, football and cricket bonuses, etc. The customer support team and the FAQ section of their website help you in any trouble when you are playing casino games or betting on different sports. Overall, it is one of the best choices for Indian players.
Betway: With up to Rs.60, 000 bonus on live casino, Betway has become one of the most used platforms for sports betting in India. They have a welcome bonus, deposit bonus, loyalty programs, and free spins that can make you engaged and help to win more. There are VIP levels where you can win massive amounts of money by sticking with Betway. Lost Vegas, Avalon 2, Immortal Romance, Mega Moolah, etc. are some of the favorites in Betway amongst its 500 different games.
Bet365: Bet365 is actually the world’s one of the best online sportsbooks. It is also an old platform that has been around since 2000 and currently has more than 100 million users worldwide. The welcome bonus is not as high as other sites. Bet365 only offers up to Rs.5, 000 welcome bonus, and the minimum deposit has to be Rs.350. They have live casino games, sportsbooks for cricket, football, hockey, tennis, basketball, rugby, baseball, etc.
10Cric: Popular for its extensive collection of sports betting games, 10Cric is a top-rated site amongst the cricket bettors of India. They offer a welcome bonus up to Rs.20, 000 and also provide free bets with your first, second and third deposit amount. They also give users a welcome bonus to their live casino. Slots, poker, sportsbook, live casino – each of them has a big collection of games loved by many people.
Betfair: One of the largest betting exchange platforms in the world, Betfair, was founded back in 2000. It is quite famous for cricket betting, and that is why it was the best betting site in the UK in 2012. They have in-play betting, matched bets, and different types of games and bets to choose from. Unfortunately, Betfair does not accept Rupees, but they allow third party methods and even Western Union.
Laws
Indian law prohibits physical gambling, but there are no laws that make online betting illegal activity. However, making sportsbooks is banned in India. It means that if a gambling site is situated in India, it will not be legal for use. To make it more specific, the Public Gambling Act 1867 prohibits any gambling activity in India. But India does not have the Internet Gambling Prohibition Act like the USA. As a result, online gambling is not considered as an illegal activity in India.
FAQ
How can I bet online in India?
Firstly, you have to choose a suitable betting site that has proper certification and regulation. You can select any of the platforms that we have recommended. You need to make an account and deposit an amount to a specific platform to start betting. You need to be above 18 to be eligible for creating an account on an online betting site.
How do I claim my deposit bonus?
If you are using a certain betting site, you need to check if the platform provides a deposit bonus. An online betting site may give specific bonuses on the first deposit, and they may give a particular limit for the reward. Also, to withdraw the bonus amount, you need to wager it multiple times.
How to withdraw from my betting account?
A site has different withdrawal methods. You can use a debit card for withdrawal and also third-party wallets like PayPal, Skrill, Payoneer, etc. can be used for fast withdrawal. Bank withdrawal is also available from many sites. Some websites even allow you to withdraw from Western Union.
India has known gambling for many centuries. The games, like Teen Patti, are a major part of our traditional festivals such as Diwali. However, the rules and regulations regarding gambling and its taxation is a complicated subject. With the rapid growth of online gambling, it’s more important now to understand how lottery winnings are taxed in India.
In this article, we’re going to look into the taxation and legality of online gambling. So how lottery winnings are taxed in India? Let’s find out!
The Legality of Online Gambling in India
In India, gambling is a subject of state, which means that states decide the matters, like laws, tax, etc., related to gambling, whether it is physical or online. The rules regarding online gambling in India are even more tricky. The Indian casinos aren’t allowed to build or promote their online gambling websites except for the state of Sikkim, which has an online lottery in which lotto lovers participate nationwide.
However, this doesn’t mean the online gambling is illegal in India. The international lottery companies are legally permitted to create and promote their online gambling sites, provided that they deal with payments in Indian rupees. Thus, international companies, like Lottoland, have become increasingly popular in India with their Powerball and multi-million lotteries.
How are Lottery Winnings Taxed in India?
The tax applies to any lottery winning, which is above Rs 10,000 from online casinos, according to the Income Tax Act of 1961. Under section 115B, it’s written that any money from better, gambling, lotteries, crossword puzzles, or any other game of this nature shall be taxed at a uniform rate of 30% (addition of 1.2% cess). When you list your income source statement, the lottery winning money comes under the heading of ‘Other Sources Income.’
Lottery tax relation with income tax
Your income tax rate is not affected by how lottery winnings are taxed in India. For instance, if your annual income is below Rs 2.5 lacs (or Rs 5 lacs, you won’t need to pay the income tax depending on your tax structure). But if you win prize money, the amount of winning prize you get will be 70% of the total price since 30% will be deducted from your total winning.
In practice, many online lottery sites charge you 30% Tax Deducted at Source or TDS when you withdraw an amount exceeding Rs 10,000. While some online lottery websites might not deduct the tax, allowing you to pay the 30% TDS by yourself.
Online lottery prize-winning in resources other than money
Online games often offer kinds instead of money. For example, if you win a car, then your prize distributor has a choice of either make you pay the GST tax of 31.2% on the market value of that car or bear the tax amount himself.
If you win an Alto car in an online lottery or a game show whose market value is Rs 5 lacs, you shall pay a tax of Rs 1.5 lacs at 30% GST before getting that car.
In the same way, if your online lottery winning prize is in cash and other resources, you need to pay the tax at 30% of the prize’s total value, i.e., 30% of your winning amount and the market value of the resource.
Why Online Gambling attracts so many people?
The answer is actually quite simple. Most people are manipulated via ads. And online gambling in India is mostly promoted in such a way that makes people think that if they know the game, they can be the king. In every single game, or if we talk about gambling related to sports, there is a fanbase or a group of people who think that they know the game and the teams better than anyone else, and hence, they invest heavily.
But, gambling is not something that can make you rich just because you invested in the best team in the world; rather, it’s all about making the right investment at the right time. However, people are most likely to hold on to their instincts only rather than making the correct decisions at the best times. Hence, although many people lose their money, they continue to believe themselves and think that they can make a lot of money out of gambling, and hence, it’s a lucrative market.
On paper legality to Avoid Taxes
To be honest, who likes to be taxed? But evading tax is illegal; avoiding the tax is not. Luckily, there’s a legal way to avoid taxes on the prize money from online lotteries.
If you win a sweepstake at an online lottery website, your winning prize money will be credited to your lottery account. Then to get your prize money, you have to withdraw money from the account. Since prizes over Rs 10,000 are taxed, you can withdraw your prize money in the portions of Rs 9,999 each time. So during an audit, only the amount of Rs9,999 will be noted, on which tax doesn’t apply. Thus, making your winning prize tax-free.
Note: as a responsible citizen, one must disclose any winning on which TDS is deducted in his/her income tax revenues.
FAQs related to Online Gambling
Why Gambling Is Illegal In India Right Now
- Is online gambling illegal in India?
Certainly not across India. There are some rules set by certain states within India, but as a whole, gambling can not be considered a crime in India yet.
- Is it illegal to gamble using international platforms?
Most of the quite reputed international gambling platforms were not available in India earlier. With some recent changes in rules, more and more international platforms are making their entry to India. These platforms are available in India after they abided by India’s laws, and hence, gambling on these platforms isn’t illegal at all.
- Is it legal to withdraw my winnings from online gambling platforms?
Yes, you can withdraw any amount you have won by gambling on online platforms.
- How will I be taxed if I win a certain amount of money by betting online?
If and only if you win an amount larger than or equal to ₹10,000, then only you will be taxed.
Wrapping Up!
Why Gambling Is Illegal In India Now
The online gambling and gaming industry has about three hundred million users in India, which is expected to get double in the next two years. Also, there’s a 100% spike in the registration of new users, resulting in a huge boom for the Indian economy. Thus, by regulating a few improvements in how lottery winnings are taxed in India, many exciting online gambling companies will reach India; it is a matter of time when we start seeing its fruits.