Punters of India, rejoice!

Representation pic. Pic/iStock

Punters of all ilk--whether you play horses or buy lottery tickets, here is good news for you. Stop buying physical, "paper" tickets from the racecourse window or a lottery shop; instead, shift your activity online. Use your phone or tablet or computer to open an online betting account, and purchase your "tickets" online using the internet.

The reason? For the first time in history, the government will allow you to set off your losses against your winnings, and pay income tax only on the "net" winnings if you are wagering through an online betting account. What seems to have gone unnoticed by most is a newly inserted section by the finance ministry In the union budget presented less than a month ago: 115BBJ (clause iii) which prescribes this radical change, radical of course, for the gambling community.

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mid-day came across a video circulating on social media in which one Mr Anoop Bhatia, a chartered accountant from Jaipur, examined this newly inserted clause, and contacted him. "Yes, that's true," the 45-year-old Bhatia, who is an income tax practitioner since 2003, confirmed over the phone when speaking to mid-day, "this law takes effect from April 1 this year, and will be applicable from accounting year 2023-24 (assessment year 2024-25)."

Earlier, if a horse player won a jackpot of Rs 10 lakh, but had lost Rs 5 lakh in other bets placed round the year, he was still being taxed on the winnings of Rs 10 lakh. Under the new rule, however, since all his losing bets would also be reflecting in his betting account, he would be asked to pay tax only on the net winnings of Rs 5 lakh for the year.