In India, casino income tax regulations are governed by the Income Tax Act, 1961. All winnings from casinos, whether physical establishments or online platforms, are considered taxable income under the head \“Income from Other Sources\“. According to Section 115BB of the Income Tax Act, any winnings from lotteries, crossword puzzles, races including horse races, card games, and other games of any sort are subject to a flat tax rate of 30% without any basic exemption limit.
The tax deducted at source （TDS） for casino winnings is applicable when the amount exceeds ₹10,000. Casino operators are required to deduct TDS at the rate of 30% before making any payment to the winner. This applies to both resident and non-resident Indians. The winnings are taxed regardless of whether the casino is located in states where gambling is legal, such as Goa, Sikkim, or Daman.
For online casino platforms operating in India, the same tax rules apply. Players must declare their winnings in their income tax returns under the appropriate head. Failure to do so may result in penalties and interest charges. It\“s important for players to maintain proper records of their winnings and tax deductions to ensure compliance with Indian tax laws.
The Indian government has been increasingly focusing on regulating the gambling industry and ensuring proper tax collection from casino operations. Recent amendments have strengthened the compliance requirements for both casino operators and players. The GST Council has also imposed a 28% GST on the full face value of bets placed in casinos, creating an additional tax burden on the industry. |
