In India, the taxation of casino winnings is governed by the Income Tax Act, 1961. According to Section 115BB, any income from winnings from lotteries, crossword puzzles, card games, gambling, betting, or any other similar activity is taxable at a flat rate of 30%. This tax is applicable regardless of the amount won, and no deductions or exemptions are allowed under this section.
Local Indian casinos and online gambling platforms operating within the country are required to deduct TDS （Tax Deducted at Source） at the rate of 30% on winnings exceeding ₹10,000. This ensures that the tax liability is met at the time of payment itself. Popular local casino products like \“Teen Patti\“ and \“Rummy\“ winnings fall under this taxation rule.
It is important for Indian gamblers to declare their casino winnings in their annual income tax returns under the head \“Income from Other Sources\“. Failure to do so can result in penalties and legal consequences. The tax treatment is the same for both physical casinos in states like Goa and Sikkim, as well as for online gambling platforms operating in India. |
