Are winnings from online betting apps taxed?

There are no clear laws for online betting in India. Betting apps based outside India can be considered legal for Indian players. The Public Gambling Act of 1867 gives some highlights on legal betting aspects. The government of India has allowed each state to decide on their own rules for gambling in the country. There are a lot of sports betting apps in Indian since Indians love to bet on sports like cricket and kabaddi.

Wins from online betting apps are not taxed under the Income Tax Act. However, they are taxable at a flat rate of 30% plus applicable surcharge and cess.

Wins from online gaming are subject to being considered as Income from Other Sources. This income is taxed at a flat rate of 30% excluding cess. The amount that you pay after including the cess is 31.2%. For an individual with annual income of Rs 1.5 Lakhs, he has to pay Rs 50,000 including cess on the income he earned from gaming.

Online gaming income is subject to be considered as Income from Other Sources. It is taxed at a flat rate of 30% excluding cess. The amount that you pay after including the cess is 31.2%.

The winner of the prize is liable for a TDS deduction of 30%. The receiver needs to reveal the amount while filing his annual ITR. If the winner receives the gift, the tax is applicable on the market value of that gift.

Winning money from online betting apps is liable for a TDS deduction @ 30%. If the amount exceeds INR10,000 the distributor is responsible for deducting the tax at the time of payment.

Income from online betting is taxable in India.