Section 115BB of the Income Tax Act lays down the rate of tax for winnings of any lottery, card games, horse-race, crossword puzzle or any other gambling or betting activity to be thirty per cent (30%).

2) any winnings remitted in Indian bank account though illegal could still be taxed at the rate of 30% under the Income Tax Act.

3) if gambling winnings are remitted in India from abroad, one could face penalties of up to thrice the remitted amount under Section 13 of the Foreign Exchange Management Act (FEMA) 2000.

Sir,

Gambling is illegal not only on foreign sites but also on indian sites unless they are registered with SEBI and RBI ( in india ). You did not mention the type of the currency you receive as income ( I meant, any forex trading also involved here). Sec. 80 RR of income tax act describes the tax deduction on income from foreign sources. There are several factors the tax is calculated for the income you receive.

You may get in touch with me with details.

Thanks,

Adv.Niranjan,

mobile/whasapp - .

As you said there is no law prohibiting gambling in India, you may not be worried on that aspect.

The main difference between legal and illegal gambling is that legal gambling is monitored by government inspections agencies. But more people gamble because it is legal.

An 'illegal gambling business' is defined to be a gambling business which: Is a violation of the law of the state in which it is conducted; and. Involves five or more persons who conduct, finance, manage, supervise, direct or own all or part of such business

Gambling is the wagering of money or something of value (referred to as "the stakes") on an event with an uncertain outcome with the primary intent of winning money or material goods.

If you want to pay tax on the money received through winning in the gambling, you can legalise it by showing it as income from other sources and pay the income tax accordingly.