Taxation laws in India are pretty complicated. Even filing a routine yearly income tax return is usually a dreaded process for many. With so many sections and exemptions, it is no wonder that only a few people fully understand the subject. Those playing casino games either online or in land casinos are often are confused thinking ‘Is money won in casinos taxable in India?' Let’s look at some of the laws
Is money won in casinos taxable in India?
A simple answer to the question is `yes´. The monies won from a casino is liable to be taxed under section 194B of the Income Tax Act. Under the provisions of the act, such winnings are liable to be taxed at a flat rate of 30%, along with a 10% cess and surcharge, taking the total liability on the winnings to 31.2%. This tax is to be deducted at the source, by the casino, before handing out the winnings and is to be deposited by the casino operator to the government.
Is money won in casinos taxable in India? Yes, however, only winnings of more than ₹10,000 are liable for such TDS, and no tax is deducted on winnings of less than ₹10,000. Some other provisions regarding such winnings include
When the total tax liability of a taxpayer is less than the TDS deposited against their name, the taxpayer is eligible for a refund. However, the TDS deposited for casino winnings are not eligible for refunds even if the TDS crosses the tax liability for a particular financial year
Winnings made from a casino cannot be used to claim deductions under Section 80c or 80d of the IT Act. Irrespective of the deductions that an individual may be eligible for, they have to a 31.2% tax on winnings of more than ₹10,000
Irrespective of which IT slab you belong to, depending on your total income for a financial year, your casino winnings will be taxed at the current rate of 31.2%.