Indians can easily participate in International lotteries. It does not matter where the lottery is held. Whether in the US or the UK, Indian gamers can take part in any lottery by following these steps.
Decide on the lottery you want to Play
First of all, you have to select the International lottery you would like to play. Thanks to Lottoland, you can buy the entry online as well as have the chance to win greater jackpots.
Before getting registered on the lottery website, keep in mind that you have to choose the particular lottery which you want to play. Then, you can select it from the list of available lotteries on the site.
Find a Legit International Lottery Site, Register, and Verify your Account
Before you can buy online Powerball lottery tickets, you will have to register on lottery sites.
Not any lottery provider will do. You are required to select reliable international lottery sites that serve Indian lottery players.
Lottoland is the best website to play the lottery in India. They have a great presence around the world and are trusted by a massive number of players.
Now that you’ve found the right provider for you, it’s time to add funds.
Adding Funds
The most important thing that matters are the funds. To play online lotteries, you should have adequate funds in your account. To deposit the funds, you have to log into the site and, in the menu, click on the “Deposit” or “Cashier” option.
There is a wide range of deposit methods available on top legit lottery sites, such as UPI, credit and debit cards, cryptocurrencies, net banking, and e-wallets. Select the method which suits you to deposit the cash into your account.
Select the lines on the Lottery ticket
When you select a lottery, you will see a number grid on the ticket that ranges from 1-49 of main numbers and with an additional one or more bonus numbers.
Buy the Ticket
In the final step, when you have chosen the lottery numbers, it’s time to purchase the lottery ticket and add it to your cart. The method to buy tickets is the same as that when you add things to your cart from E-commerce stores. It is simply the same as online shopping.
Now you have to checkout and pay for the tickets.
Now that you know more about the steps to take part in international lotteries let’s discover how much tax you will pay if you win the jackpot.
Now that you understand how Indians can play international lotteries, let’s learn a bit more about the taxes to pay when you win the Powerball jackpot.
If you win the Powerball jackpot, how much tax will you pay?
First of all, consider the following points to ease your understanding before making any calculations.
- Let’s suppose that the lottery amount won is 40 million $ from US Powerball Jackpot.
- It should be kept in mind the lottery agent sells the lottery ticket and takes no commission on the winning amount.
- The jackpot amount is present in lump sum form, which means that long-term taxes will not be imposed on it.
- The tax on the winning amount has been deducted in India, not in the US, and the Double Taxation Avoidance Agreement (DTAA) has been made.
In this example, we state that the Powerball Jackpot amount has a value of ₹ 4,135,438,197. Normally, we almost consider it as 4 billion INR or ₹ 400 crores.
Following are the taxes that will be imposed on the Jackpot amount
- 20% Deduction of (TDS)
- Deduction of Income Taxes
- 29% of Basic Tax (after the deduction of TDS)
- 24% Surcharge on Basic Tax
- Surcharge +6% Cess on the basic tax
There is no relief from taxes in India. Consider the Following tax calculation on the lottery amount.
- 20% deduction of TDS on ₹400 crores is equal to ₹80 crores
- The income tax that would be deducted on amount = ₹400crores-₹80crores = ₹320 crores
- 29% basic tax on ₹320 crores = ₹92.8 crores
- 24% Surcharge on ₹92.8 crores (basic tax) =₹22.27 crores
- Cess of 6% on ₹ 48 crores (Basic Tax) + (₹ 22.27) Surcharge = ₹ 4.242 crores
- Total tax that has to be paid = ₹ 80crores+₹ 92.8crores+ ₹ 22.27crores + ₹4.242 crores = ₹199.312 crores
- The amount that the winner will get after the deduction of taxes will be = ₹400 crores – ₹199.312 crores = ₹200.688 crores.