PUNTERS FEEL THE PINCH, SAY TAXES ARE UNFAIR
By Shailendra Awasthi
TIMES OF INDIA 02-08-2010
Pune: A pre-independence era betting tax act is causing a hole in punters’ pockets at The Royal Western India Turf Club (RWITC).
The Maharashtra government is charging a 20%tax on fixed odds betting but the provisions of the Betting Tax Act 1925 makes it actually 25%, thus putting a punter back by 5%.
Many punters have been finding it strange when they bet, say Rs 500 on winning at the fixed odds window assuming that a 20% tax is being levied. The receipt they get in return hence shows a bet amount of Rs 400 with the rest Rs 100 being deducted as tax. When the nominated horse wins, the win dividends is also calculated on Rs 400.
Punters, however, feel that for a bet of Rs 400 they are actually paying a tax of Rs 100 which comes to 25% of the bet amount. “Why the RWITC can’t collect Rs 100 extra as tax on a Rs 500 bet. This way we will exactly pay 20 per cent tax,’’ asked Nilesh Mhatre, a regular punter at Pune. Others also feel the same assuming there is something seriously wrong with the taxes.
But a close look at the Betting Tax act reveals that as per the Act, any money paid at the tote window is liable for tax deduction. “That way if we collect Rs 100 as tax for a Rs 500 bet, we will have to tax the whole Rs 600 which has been paid at the tote window,’’ says Santosh Kumar, in-charge of the Tote at the RWITC.
“The Club is not charging commission of bets laid on fixed odds,’’ says Vivek Jain, chairman of the RWITC. “We are going by the government rule and we have to tax all the money that is paid on tote.’’
WHAT IS FIXED ODDS BETTING ON TOTE?
Fixed odds betting on tote is similar to betting with bookmakers. Here a punter knows well in advance how much dividend he is going to get since he has backed a horse on a certain odds available at the time of laying of bets. The only difference between the two betting types is that while a bookmaker collects tax as extra money on the exact bet amount—now Rs 36 as tax on every Rs 100 bet—the fixed odds betting on tote charge only 20% as tax on the amount paid by the punter.
