• Regarding online lottery

Is it legal to play online international lottery in india?
If yes then what is the process of getting winning amount in my account, is there any involvement of rbi? And what is the minimum amount after which tax has to be deducted and what is its procedure?
If it is legal then where it is written in constitution law? Is there any issue while making transaction for deposit for online international lottery via credit card or for withdrawal for winning amount.please clarify
Asked 7 years ago in Civil Law

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13 Answers

 the Supreme Court held that it was constitutionally valid to discriminate between online and paper lotteries as two distinct classes of lotteries in terms of the Lotteries (Regulation) Act and therefore, a state government may ban online lotteries regardless of the fact that it may be conducting paper lottery schemes. The Supreme Court observed that as long as a state does not itself conduct a particular class of lotteries, it may ban within its territory that class of lotteries conducted by other states.

 

2) In states like Madhya Pradesh ,Tamil Nadu ,Kerala lotteries are banned 

 

3) Sale of lottery is not permitted in Tamil Nadu. “under Section 5 of the Lotteries (Regulation) Act, 1998 (Central Act 17 of 1998), the governor of Tamil Nadu prohibited the sale of tickets within the territory of Tamil Nadu of all lotteries, organised, conducted or promoted by every state, including the state of Tamil Nadu.”

4) Kerala has banned online lotteries 

 

5)  you have to declare your winnings from lottery and pay tax at 30 per cent

Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations

1) There are some restrictions on gambling in India, legislation for lotteries and gambling in general is set by each individual state and there are many states which allow people to play lotteries both online and at land-based lottery retailers.

2) Indian citizens are free to win huge prizes thanks to international lotteries online. International lotteries are not subject to the usual Indian gambling laws as the draws take place outside the country allowing residents of all Indian states to play regardless of the gambling laws in any particular state.

3) Yes, you can play international lotteries.

4) If you win a prize, you will receive a text message or email informing you of your win. Prizes are automatically paid into your online account soon after the draw has been made and you can choose to withdraw your winnings or use them to fund future ticket purchases.

5) Yes. When you set up your online account, you will be required to choose one of the many methods available for funding your account. You can use a variety of methods to withdraw your winnings including Visa, Mastercard and Neteller. 

6) you should check if your winning prize makes you liable for income tax in India.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

I think playing will not be a problem as there are number of website that allows users to register around the globe.

However adding and withdrawing funds might cause an issue.

Also what will be the returns? How many tax would the lottery website might charge? Again in India if you win money from lottery you need to pay some percentage to Indian government in form of tax.

Will that be profitable is question you will to ask your self. Its better you play lotteries that are legal in India. For States like Maharashtra, Goa and Sikkim you can play Lotto. Also you can play Rajshree Lottery

 

Koshal Kumar Vatsa
Advocate, Gurgaon
2282 Answers
3 Consultations

Actually you are so much confused that you are simply finding the fish in the botton. It is legal or illegal have you not found it on internet.

 

Koshal Kumar Vatsa
Advocate, Gurgaon
2282 Answers
3 Consultations

Hello,

There is no fixed law relating to online international lottery , so it is legal to play and win but you have to pay tax for this . I would like to suggest you to use online payment site . However would like to suggest you to take help of a CA .

Regards.

Swarupananda Neogi
Advocate, Kolkata
2993 Answers
6 Consultations

(a) The State of Kerala, by notification dated 13.01.2005, issued in exercise of the power conferred by Section 5 of the Lotteries (Regulation) Act, 1998, (in short ‘the Act’), prohibited the sale of all computerized and online lottery tickets marketed and operated through vending machines, terminals, electronic machines and tickets sold through internet in the State with immediate effect and declared that Kerala shall be a free zone from online and internet lotteries.

2) 01.2005, issued a subsequent notification dated 22.04.2005, permitting the sale of paper lotteries organized, conducted or promoted by every State Government including the State of Kerala and the prohibition imposed on the sale of computerized and on-line lottery tickets organized, conducted or promoted by every State Government continued to remain in force declaring the territory of the State of Kerala to be online, internet and computerized lotteries free zone

 

3)Being aggrieved by the notification dated 22.04.2005 discriminating between the paper lotteries and online lotteries, the All Kerala Online Lottery Dealers Association, State of Sikkim and one Sreekala and others filed Writ Petition (C) Nos. 19582, 14495 and 16063 of 2005 respectively before the High Court.

 

4) learned single Judge of the High Court, by judgment and order dated 27.07.2005, dismissed the writ petitions.

(f) Being aggrieved by the decision of the learned single Judge, the petitioners therein preferred Writ Appeal Nos. 2011, 2012 and 2235 of 2005 before the Division Bench of the High Court.

(g) The Division Bench, by a common judgment and order dated 23.05.2006, dismissed the appeals.

 

5)SC held we are of the considered opinion that State of Kerala was well within its rights to prohibit the sale of online or internet lotteries in its State and there is no fault in it. It is well within the powers conferred on it under Section 5 of the Act. A State Government can organize, conduct or promote a lottery subject to conditions mentioned in Section 4 and if there is any violation of the conditions mentioned in Section 4, it would be always open to the State Government to prohibit such lottery and that would be within the legislative power vested with the State under Section 5 of the Act as in that case the State would be only complying with the provisions of the Act made by the Parliament. 

Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations

1) You can play online international lottery just follow their terms and conditions.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

Sir you can play internatuoint lottery , the amount can be received in account the same will be taxable no minimum limit for same.

Further yes remittance from your account can be made for partiticipation fee.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Yes you can play the international lottery same is not subjected to Indian lottery ban or criminalisation.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

you can carry/ bring, the money without being illegal as it is won in a lottery in other Country and the money will be taxed as your income from other sources/ other country. Atleast 40% tax is payable for that money

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Dear Sir,

The offence will be estimated on the jurisdiction of land from where you are playing game. If it is banned in your State of India then you cannot venture playing such game because the amounts which you won may be credited into your account and sometime later issue may arise and you may receive a show cause notice from the concerned department.  

Kishan Dutt Kalaskar
Advocate, Bangalore
6230 Answers
499 Consultations

Indian citizens are free to win huge prizes thanks to international lotteries onlineInternational lotteries are not subject to the usual Indian gambling laws as the draws take place outside the country allowing residents of all Indian states to play regardless of the gambling laws in any particular state.

Total tax payable = The amount you earned and recieve in your account x 35.535% = Rs. __________

Tax 30% + Surchage 15% of tax(including Cess and EC)+ Cess 2% of tax + EC 1% tax

i.e. 30+4.5+0.69+0.345 = 35.535%

The income tax surcharge is levied on the taxpayers who earns more than Rs one crore in a year. For individuals, this surcharge was 12%. But budget 2016 has increased the burden of surcharge for them. Now the surcharge on income tax has become 15%. The surcharge for all other categories of the taxpayers would remain same.

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

After getting the answer from 2 lawyer, still i have doubt as one is saying it is illegal and aother one is saying legal.please clarify my doubt, and i remind you my question is on international online lottery, not on national lottery

Playing international lotteries online from India is simple. As all of the draws featured take place outside Indiaplaying foreign lotteries such as EuroMillions or Mega Millions are not subject to Indian gambling restrictions so you can play from anywhere in the country.
It is legal to play international lotteries as they take place not in India but in some other country offshore where gambling is not an offence. It will not be treated as a crime in India but the winning amount brought in India will be taxed.

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

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