Horse Racing Betting...

413 views 5 replies

Shivam RC

Student

23688 Points Joined November 2017

INCOME TAX SCENARIO :

1). TDS u/s 194BB of the Income Tax Act 1961 @ 30% is levied if the Winning Amount is Rs. 10,000 or more.

2). Now the Assessee has to declare this Income in his ITR under the head "INCOME FROM OTHER SOURCES" and the same is taxable @ 30% u/s 115BB without any basic exemption limit and Chapter VI A.

GST SCENARIO :

Lottery, Betting and Gambling is treated as a "SUPPLY u/s 7 of the CGST Act 2017". Now the GST Rate on Betting is 28%.

I'm I right ????
Kindly confirm Experts ASAP...

Replies (5)

Kapadia Pravin

17264 Points Joined December 2018

In so far as income tax is concerned , such winnings are taxed at flat rate of 30% + 4% cess.

Shivam RC

Student

23688 Points Joined November 2017

Thank You Sir for your reply.

I know a person who is taking Horse Racing betting via Whatsapp Group. But I was shocked that he is not charging GST on the betting amount nor deducting any Tax from the Winnings amount from the Punters. He has opened a Foundation ( NGO ) and telling to deposit the betting amount as "DONATION".

Is it LEGAL ?????

Michael

First clan

22 Points Joined July 2020

Where did you found this rates. Double check

Ashwin Kumar

1234 Points Joined August 2017

Originally posted by : Michael
	Where did you found this rates. Double check

Thats Illegal. Make sure he doesn't get caught or declare income under Income declaration scheme (if available). If he gets Caught he may be liable to pay tax of upto nearly 85% and may be charged with prison.