Inward remittance of income from gambling, casinos, lottery, etc

Knowledge resource 1775 views 4 replies

Rajesh Mahajan

Employee

26 Points Posted on 19 September 2022

5.12 Remittances of Income from lottery winnings, racing/riding, sweepstakes etc. are prohibited under the Act, 1999 read with Rule 3 and Schedule 1 of the Foreign Exchange Management (Current Account Transaction) Rules, 2000.

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So, if someone wins a heavy amount in an American or European lottery/gambling, etc, by playing online, or while on a visit as a tourist, does that mean that the money cannot be used to make purchases in India? Should the amount be left in a foreign bank? How can he/she bring money to India? What should be the "source of income" that has to be stated to the Indian banks?

Replies (4)

sabyasachi mukherjee

Profession Business

28207 Points Posted on 20 September 2022

Income from crossword or puzzle is taxable.

Louise59

Director

22 Points Posted on 10 December 2022

I agree, taxes are pretty high.

Dennis Winn

4 Points Posted on 12 June 2024

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Adja Hariba

adjara

22 Points Posted on 03 July 2025

This is a tricky area, especially considering the restrictions under FEMA. But from what I've seen, many individuals working with international platforms like nowplix platform find creative and legal ways to manage such income. Typically, they either set up local entities abroad or use trusted third-party wallets or payment processors to hold the winnings temporarily.

When it comes to remitting the income to India, it's important to declare a valid "source of income"—in this case, it would be foreign services or entertainment-based earnings if structured properly. Direct remittance from gambling winnings is restricted, but structured correctly through platforms that operate as entertainment or marketing providers, it can sometimes fall under a different classification.

Still, best to consult a tax advisor or a FEMA compliance expert before transferring any funds.