Is winnings from online sport bet winnings legal and taxed?
I have used online sport betting sites such as Bet365 (company registered and regulated by UK govt) and used online wallets such as Skrill and Neteller (owned by PaySafe group, registered in England) for depositing money to the betting site, since Indian debit cards are not accepted directly by Bet365, I have made some money using sport betting, which is a game of skill and not any card games, I withdrew the money from the Betting site to the above mentioned E-wallets, from these e-wallets I want to withdraw to my Indian Bank account via a wire transfer (note, my e-wallet balance is stored in USD) is it legal to do so, can this be a violation of FEMA since FEMA itself has no specific bans on remittance to India from sport bet winnings?? If legal what is the tax I must pay??
Asked 3 months ago in Income Tax from Bangalore, Karnataka
You need to pay 30% income tax on your income from betting.
Has any TDS (of any country) been deducted from your winnings by the website??
No, ma’am the online sport betting website is based and registered in UK and there is no tax deducted on sport bet winnings in UK either in the form of TDS or other forms of tax
Asked 3 months ago
You can remit the amount to the Indian bank accounts. Income tax shall be applicable @30%.
You can transfer the proceeds in USD to Indian bank account. Income tax in India will be payable @30% without any benefit of expenses and deductions.
It is fine to withdraw your profits in foreign currency and deposit the same in your bank account. you will need to pay taxes @30% on the profits earned.
Hope that clarifies.
Is my actions ‘illegal’ in the eyes of law as online sport betting is still a grey area in Indian law and will this be a violation of FEMA or any other banking or finance law in force in India?
Asked 3 months ago
No. You can't say it's illegal.
Actually there are no rules for such taxation as in your case. But, if there are no rules, we can't say it's illegal.
I dont think it is an illegal activity. Now a days you have similar sites in India where you form teams and bet your money on the same.
You have to pay tax @ 30 % in India ..Its not illegal.
Sorry, we don't deal much into FEMA so I am not sure of this.