• Legality of online poker

Is playing real money poker legal in India? If yes, what are the taxation rules regarding the income generated from it?
Asked 7 years ago in Taxation

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7 Answers

1. Online poker is not gambling as it depends on skill among other factors, hence it is not illegal in India.

2. It attracts a 30.9% TDS (tax deducted at source)

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

Hi

I presume you are only a player and you are interested in playing in Online Poker games.

I also presume that you are not a Operator/Technology company who intend to operate a poker website

Playing on poker sites such as Pokerstars, Partypoker, Bet365, adda52.com, pokabunga etc is NOT ILLEGAL in india.

Even playing rummy in online sites such as ace2three, junglee rummy, rummy circle is NOT ILLEGAL in India.

Under Section 194B of the Income Tax Act, 30 per cent tax is deducted on any prize money in excess of Rs 10,000 and other winnings from games, lotteries etc.

The basic exemption limit is not available in case of winnings from lottery and games i.e You are required to pay tax at the rate of 30% on total winnings in excess of Rs10,000-/-

Hope this information is useful.

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

games of chance are illegal, games that are based upon a preponderance of skill are not

2) in sikkim online online gambling and poker is legal but is limited to residents of sikkim

3) the Public Gambling Act of 1867, , makes it a crime to either run a “public gaming house” or to even be present at one, and provides criminal penalties for both.

4) india does not have any laws relating to online games , poket etc

Ajay Sethi
Advocate, Mumbai
95533 Answers
7656 Consultations

5.0 on 5.0

Hi

You have to pay tax on every winning above Rs10000-/- within 30 days from date of receipt of prize money.

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

As per Section 115BB of the Income Tax Act on poker winnings or winnings from any such card games etc. is 30%.

2) As per Section 194B of the Income Tax Act, on any winnings above Rs. 10,000/- it is the responsibility of persons organising or managing the event to deduct 30per cent tax before releasing the winnings.

Ajay Sethi
Advocate, Mumbai
95533 Answers
7656 Consultations

5.0 on 5.0

There are already a number of online poker and rummy operators trying to make their foothold with India's 1.2 billion population. Adda52 offers both rummy and poker, while Thrill Poker is currently just offering poker. Worldwide sites including PokerStars and 888poker also offer real-money poker in India.

Even though these sites are operating in a grey market, they believe they are also operating legally since rummy and poker have both been determined as skill games. This ruling may clarify whether both worldwide and India-only poker sites are legal or not in India.

Poker and rummy operators, together with millions of players in India, are anxiously awaiting a country's Supreme Court ruling that could determine the legality of both games.

The Supreme Court judges in India are expected to issue a ruling on a case that began in Madras, India in 2012.

The Madras High Court ruled that rummy clubs could not profit from real-money gaming essentially banning the game in the country. This decision has been appealed based off the fact that rummy has previously been classified as a game of skill by the Supreme Court in 1968.

T Kalaiselvan
Advocate, Vellore
85734 Answers
2266 Consultations

5.0 on 5.0

Do I have to pay tax on every winning above Rs 10000 or net winnings in a year?

If there is no law or rule governing the legality of this then it can be considered as an income from grey market, hence there is no question of tax liability for unaccounted money.

T Kalaiselvan
Advocate, Vellore
85734 Answers
2266 Consultations

5.0 on 5.0

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