Income tax is something that many of us are all too familiar with. We’ve all paid what feels like mountains of it on our earnings. We pay it on other money we make, and even certain assets that we own. But one thing we don’t really think about are the winnings from gambling winnings at casino sites. In India, most of us owe a significant chunk of our winnings in income tax and that’s often surprising to some people, which is why we’re here to walk you through it.
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Income Tax Rates Come to Around 31.2% After Cess
A flat 30% income tax rate applies to all winnings, but it actually goes up to around 31.2% with added Health and Education Cess. Winnings are categorized as income from other sources. And this means they technically count toward added income. And it doesn’t matter whether you play in-person or online. Income tax applies in a pretty standard sense across the board, based on the Income Tax Act 1961.
Taxation Amounts Vary Based on Winnings
With that being said, however, taxation amounts vary. You need to make above ₹ 10,000 to qualify for the tax, to begin with, but as your winnings increase, the taxable amount and percentage also change.
Larger winnings such as ₹50 lakh have an added 10% surcharge, which brings it up to around 33%. A significant amount of calculation and number-crunching goes into determining the tax-rate applicable to you and your winnings. This is why you should be familiar with the rules that apply most to you.
You File Your Gaming Income With Tax Returns
Typically, you’re required to file your gaming income with your tax returns. This is also where you declare your winnings. This makes it easier for filers to declare this added income and have it on record.
It’s absolutely not worth the risk to evade or avoid filing these taxes because most reputable sites and platforms are already deducting them from your winnings—so why wouldn’t you claim them?
If You Get ‘Full Winnings,’ Filing is Your Responsibility
Speaking of deductions, be wary of websites and platforms that promise full winnings. While not necessarily malicious, full winnings imply that they will not be deducting taxes for you. This means that they leave that responsibility to you.
Missing out on this could lead you into sketchy, possibly illegal territory. Which inevitably affects your wins and your ability to play in the future. Rather than waiting around for legal action or consequences. Try to stay on top of your taxation and continue to play without even the slightest stress or worry.
Income Tax Has Been Vital to Governance, Especially Recently
It’s only natural to wonder if your taxes are truly benefitting the government and whether they’re even necessary. Truth be told, they’re actually vital to a lot of important development and progress that the state makes. Especially in light of the pandemic. Taxation from gambling is what allows it to stay legal, regulated, and avoid foul play.
Online betting and gambling in India are a lot more regulated and advanced than they were a few years ago. And while this means you have to pay taxes, it also offers you more security and safety while you play.
In any case, it’s important to choose only the top live casinos in India for any games or bets you’re interested in placing. You can visit our online gambling portal and stay in the loop about all things related to this. We bring you insights, information, and updates on all the top casinos and live games in India, strategies analyses, and much more.
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