Bhagalpur: Around 75 to 90 individuals who allegedly earned lakhs and crores of rupees through online betting on cricket leagues such as the Indian Premier League (IPL), international T20 matches and the Big Bash League have come under the scanner of the Income Tax Department.
According to officials, if these individuals fail to disclose their income earned through online gaming and betting apps in their Income Tax Returns (ITR) by December 31, they may face strict financial penalties. The department is empowered to impose a 30 percent tax on the total winnings, an additional penalty amounting to up to 200 percent of the tax, along with a 4 percent cess.
Sources in the department revealed that in 2024 alone, several individuals made substantial profits through online betting platforms. Preliminary data accessed by the department indicates transactions running into crores of rupees. As per estimates, a tax liability of around ₹2.7 crore would arise at 30 percent tax, about ₹36 lakh as cess, and nearly ₹18 crore as penalty under the 200 percent provision if the income is not disclosed voluntarily.
Officials clarified that no punitive action will be taken if the income details are declared within the stipulated time. Institute of Chartered Accountants of India (ICAI), Bhagalpur branch chairman CA Pradesh Kumar Jhunjhunwala said that anyone who has earned income through online gaming or betting in the last financial year must disclose it in their ITR. “Failure to do so can invite severe penalties,” he said.
How the Income Tax Department Tracked the Earnings
The department traced these earnings through Aadhaar and PAN-linked bank transactions. Officials said that had the winnings remained within the betting apps, detection would have been difficult. However, once the money was transferred to bank accounts, it triggered alerts in the financial monitoring system.
An officer stated that some individuals withdrew large sums to fund expensive lifestyles, including luxury purchases. Payments for these expenses were made digitally, further strengthening the transaction trail and alerting authorities.
December 31 Deadline for Disclosure
The Income Tax Department has given the individuals time until December 31 to revise their income tax returns and disclose the betting-related income. Failure to comply within the deadline will result in legal and financial action, officials warned.
Youth Dominates Online Betting Platforms Like Dream11
Data also suggests that a large number of online betting participants, particularly on platforms like Dream11, are young users. With the start of the IPL and other international leagues, betting activity on fantasy and gaming apps surged. While some users reported high winnings, officials noted that many others also suffered financial losses.
