WINNING THE JACKPOT!

vinod menon (Querist) 15 August 2008 This query is : Resolved
HELLO ALL..
I'VE BEEN A REGULAR IN PLAYING THE ONLINE LOTTERY GAME FOR SOME TIME NOW (RESPONSIBLE ENOUGH TO REALISE WHAT EXTEND I SPEND :-)) I'VE BEEN WINNING THE SMALL SUMS SAY.. 150$, 100$ ETC. WELL, MY QUESTION IS IN CASE I WIN THE JACKPOT, AND THE MONEY ONCE IT REACHES MY ACCOUNT AFTER FINISHING THE EURO TAXATION AND EVERYTHING ELSE, AM I TO PAY TAX ON THE SUM THAT I RECIEVED AS WINNINGS WHICH IS ALREADY TAX PAYED IN THE COUNTRY OF THE ORIGIN OF THE LOTTERY (OR IN THAT CASE; IF AT ALL IT IS TAXED THERE?!) I REPEAT, WILL I BE DOUBLE TAXED? OR IS IT THAT WHATEVER INCOME TAT I LATER GENERATE FROM THAT MONEY WHICH IS WON IS TO BE TAXED?

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Srinivas.B.S.S.T (Expert) 15 August 2008
Sir do you think those euro lotteries are genuine ones???

K.C.Suresh (Expert) 16 August 2008
The primary question whether it is recognized by the India Government

Guest (Expert) 16 August 2008
There are lot internet related frauds and once you give your bank details or card details, you enter a big risk

vinod menon (Querist) 16 August 2008
i appreciate your concern for me sirs. yeah sure there are a lot fo fraudulant sites open and folks go aftr 'em to get some easy money. this is nothing of that sort. that's y i'm enquiring 'bout the taxing dept. hope someone help me on this behalf. thank you.

vinod menon (Querist) 21 August 2008
:-)

Guest (Expert) 22 August 2008
Tax rates change from country to country.
The rate of tax deducted from your prize may not be adequate to fulfil your tax obligation in India. In that case you may to pay an advance tax after working the same and after receiving the money in India.
Double taxation benfits will be availabel to you if the country you are delaing has such an agreement with India. In such case you will get the benefit of utilising the tax deducted abroad as an advance tax credit for what you have to pay in India.

Vineet (Expert) 15 December 2009
You have to pay tax in India as applicable under Indian Laws as you are resident of India and your worldwide income is taxable in India.

Coming to specific query, winnings from Lottery and other such games are taxable at 30% in India. If you produce details of withholding tax deducted in a foreign country on such income, DTA relief u/s 90 or 91 which ever applicable in your case is available.

On a lighter side (but really serious one), Income Tax does not recognise legality or illegality of source of income. In fact there are multiple court decisions in which expenses incurred in a business tainted with illegality have been allowed as deduction.

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