Foreign lottery ticket bought online from India: legality, tax and consequences

Save Share

This query is : Resolved

Gayathri Ravi (Querist)

20 September 2026 I live in Tamil Nadu, India. Is it legal for me to buy a lottery ticket online from a foreign lottery website and pay with my Indian debit or credit card? If I win, what legal and tax consequences would there be when the prize money comes into my Indian bank account?

I've also seen reports of people in India winning prizes from foreign lotteries. If the purchase was not permitted, what consequences have such winners actually faced, or how are these cases usually handled by banks, the RBI, or the authorities? Are there any known cases or orders on this?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

20 September 2026 No, it is illegal for an Indian resident in Tamil Nadu to purchase foreign lottery tickets online using Indian debit or credit cards
FEMA Violation: The Reserve Bank of India (RBI) classifies remittance for lottery ticket purchases as a prohibited current account transaction under the Foreign Exchange Management Act (FEMA), 1999.
Tamil Nadu enforces strict bans on online gambling and lotteries within its jurisdiction.
Indian banks and payment networks block direct international transactions tied to known online gambling or lottery merchant codes.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now