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Where the income of a resident includes income by way of winnings from games of any sort, betting, gambling, etc., such income would be liable to tax in the hands of such taxpayer, at 30% (plus applicable surcharge and cess). As per the ITA, the person responsible for paying to any person any such income for an amount exceeding INR 10,000 is obliged to withhold the said tax at 30%. The term “person” has been defined under the ITA to include, inter alia , an individual, foreign company, etc. In case the winnings are wholly in kind or partly in cash and partly in kind and the cash component is insufficient to honour the withholding obligation in respect of the whole of the winnings, the payor is required to ensure that the tax at the above rate is paid before the release of the whole winnings to the payee. The tax under the ITA will not be leviable in cases where the income is leviable to Equalisation Levy, as discussed below, mine field रियल मनी. Equalisation Levy. A new tax called the Equalisation Levy (“ EL ”) was introduced by India in 2016, with the intention of taxing those digital transactions that are done through Indian IP addresses and that cause an accrual of income to foreign companies. While it was initially aimed at taxing business-to-business transactions in respect of online advertisements, the said levy was also extended, in 2020, to goods or services supplied through non-resident e-commerce operators. EL at 2% is applicable on the amount of consideration received or receivable by an e-commerce operator (subject to a threshold) from e-commerce supplies or services made or provided or facilitated by it: to a person resident in India; to a non-resident in certain specified circumstances; or to a person who buys such goods or services or both using an IP address located in India. The question of the applicability of EL to foreign gaming operators may also be an issue and will depend on the facts of a particular business model. GST. Indirect tax in India is levied as a Goods and Services Tax (“ GST ”), which is leviable on all activities that are covered within the scope of the term “supply” and is levied either on the supply of goods or on the supply of services. Activities relating to lottery, betting or gambling, under the Indian laws, are covered within the scope of actionable claim. Further, actionable claims are covered within the definition of the term “goods”. Therefore, transactions relating to betting or gambling are “supply of goods” subject to GST at the rate of 28% on the entire bet amount. Actionable claims relating to games of skill are not subject to GST. 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