Still struggling to cope with the backbreaking GST, the punters and the race clubs in the country are now staring at the battle for survival when the new TDS rule (194BB of Income Tax Act) comes into effect from April 1.
The punters, who were already paying a 28% GST plus club’s commission (varries as per betting pools) on money wagered irrespective of wins, will now have to pay 30% TDS on every rupee won beyond the yearly exemption of Rs 10,000.
The new TDS rules makes it compulsory for the clubs to take the KYC of punters, many of whom are from the disorganised sectors like domestic help or hawkers who don’t have PAN cards!
What makes the situation worse is that many punters, who have PAN cards, wouldn’t like to be recognised owing to the taboo that betting carries in our society.
“This will spell disaster for racing,” said Ram Shroff, head of the stewards body that oversees racing operations at RWITC.
Tricky part is majority of the punters aren’t aware of the new TDS rule. RWITC, on its part, is planning to educate them by putting up message boards in different languages at different nooks and corners of the Mahalaxmi Racecourse. Even setting up of the help desks are also on the cards.
Sources say RWITC is also in talks with few companies to get the betting cards issued to punters to comply with the new TDS rule.
Vishwas More, a regular punter from Kandivali, who bets small, was shocked when TOI informed him about the new TDS rule. “Don’t see any option now other than going to an illegal bookie. I can place bets with them for anything between 2 to 5 percent. Only thing is that I will have to increase the amount of bet,” he said.
Source from: https://timesofindia.indiatimes.com/city/mumbai/tds-headache-awaits-punters-race-clubs/articleshow/98621549.cms