I would like to know if the 10% is paid to the Govt and if yes under what head?

Mad Max,
Good, now your cal. is correct. It was just to make you more careful. We must try and give correct info to our friends. There are many who follow these columns. Just remember I am also a well wisher.

@Dr Bashaar

You say the tax structure is so high that punters have no option but to indulge in dishonesty.

O K. In all probability that 10% business may continue for ever. No problem.

But I have my views on that issue; and you have yours. That is all.

@ PDS
Total amount payable to Syed is not 37300/-, the exact amount is 38300, because the Exempted amount should also be added to 27,300, i.e. Tax Exempted on Investment 1000 + TDS exempted legally upto 10000 also to be added to 27300 = so the total amount to be received by Mr Syed is 38,300/-. This is applicable if you are in Western India and playing under RWITC rules. Ithna Umar ho gaya na? There are few oldies in this HT, all talk rubbishly to youngsters? Give respect and take respect.

Dr Bashaar,
Thanks for a long and interesting post, but I have my own version to the complete confusion about imposition of this high and unreasonable taxation.

The people responsible for all this are the some Race club authorities, they just don't want 10% bookie business to be affected and that is why they don't want the Govt.to reduce the overall taxation, they are not interested in cleaning up the system and the bookies to go for ever. Even the temporary absence of bookies from some centres is hog wash and you will see they are back very soon. They are the milching cows and---.

They are just not presenting the case with convincing facts and figures other wise there is very little reason for the Govt. to not see the reason and accept reduced taxation for the over all good of the Sport,
industry, employment and self employment source for lakhs and the Government tax collections. Also, the Horse Racing is not gambling and our Honourable Supreme Courts ruling is very clear, no one can deny this ruling. Lets hope, the good sense prevails sooner or later. Till then enjoy your Horse Racing, don't lose too much money, maintain limits Good luck.

Dear Mr.Madmax,
Your calculations are perfectly fine. But in the end it means Mr.Syed has to shell out 11,700/- and he is eligible to get 38300 out of the declared 50000/- right?
It was sad to hear about your uninteresting experiences with Club tote officer. Is this how your honesty is rewarded ( after donating so much honestly in terms of GST and 30% IT deduction)? Are you not feeling sick of these things? When we win big at least, we should be allowed to enjoy the euphoria of winning. Isnt it?
No such hassles with bookmakers.Many of the bookmakers are happy to pay you even if you win big. ( They know very well it happens only once in a bluemoon and it is going to come to them only later!!!! ) No such bad experiences with most of the bookmakers. But still many people feel Bookmakers are an evil to racing!!!
They collecting 10% tax ... I feel it is only due to the gradually increasing percentage of taxation. I started racing in 1977 in Mysore when the official Betting tax was 10% ( for on course it was 12.5% ) There were good number of all category punters -
..small.. say playing upto Rs 500/-in a race
..Medium say upto 2 or 5 thousand in a race
..Big punters ( only few) say upto about 50K.
All these were happy to pay 10% tax and place their bets.That way huge tax used to be collected from all bookmakers ( for the benefit of the club/government )
In the betting card also the exact amount played would be shown.. which means the whole amount which was played was taxable.
Over and above this there were so called heavy punters ( always in petis).. very few only.. only they would enjoy the facility of betting with codes( and playing with 5% tax )
Over a period of time as and how the value of money started going down, there was a slow /gradual transformation of small punters to medium, medium punters to big and big punters to heavy punters. Now as and how this transformation took place the clubs/ government also gradually became greedy and progressively increased the percentage of taxation. It is only because of this huge percentage of taxation things have taken a different form of transformation among bookmakers ( as well as punters ) and good percentage of punters have been brought under this 10% net by the bookmakers.I am not defending that what they have done is correct. But see at the same time, why this ( dishonesty ) is forced among the punter community. If a horse is being offered say 30 Paisa by the bookmaker ( with 10% tax ) ... and if both bookmaker as well as punter want to be honest with the system, then what price the bookmaker has to offer to the punter to effect this business with same returns to the punter? .. It will be say at least he has to offer 50 paise ( with 30% tax ) wherein the punter would get the benefit of 20 paisa for his investment of 130. Bookmaker would stand to lose 50 paisa for a gain of 100 Rs. ( as out of collection of 130.. 30 has to be shelled out to club/govt ) Who is the beneficiary in the end if people play with full tax????
It is just because of this percentage of tax, punters have chosen the route of dishonesty.. as no sane person will bet 130 to get a gain of 20 paisa ( if 50 paisa is offered by bookmaker with 30% tax ).. as against 30 paisa offer with 10 % tax!!!! ( Also when punters are available for betting at 30 paisa with 10% tax, no sane bookmaker will offer 50 paisa ( to be extra honest by collecting full tax ) with a higher liability for himself.
Mr.Raghavan is of the opinion that racing died when this 10% tax started with the connivance of the club authorities. But I am of the opinion that it is only because of these bookmakers the racing has still survived and still not died... if people had to pay full tax and place their bets, punters as well as bookmakers would have disappeared from the scene long back.If the club and government are benefited from tote collection and club can run the show by offering stake money to owners ( and take care of other maintenance costs ) my question is -can the owners/ trainers / jockeys and all the professionals involved-are able to manage themselves with stake money???? No way.. no way the owner can maintain the costs involved in keeping a horse with only stake money earnings.So what is the option available for him?.. no other way to approach a bookmaker. Mr.Raghavan, you are so much averse towards bookmakers just because they are collecting 10% tax and dont contribute much to the club and government ( and thereby cheating the govt/ club) My question is are only the bookmakers ( and punters )cheating the government? How many business people in India are willing to declare their true income ? Mr.Raghavan , it is definetly not that I am supporting them either. But I am of the opinion that the whole scenario has been reached only because of the greed on the part of the government by keeping the tax percentage so high, thats all. The scene between punter playing in tote and with bookmaker can be compared to someone having a Government job ( where it is not possible to manipulate anything in their income and thereby end up giving full income tax ) and someone having a job in a private sector where it is possible to declare only a part of the true income ( and pay tax on that ) and collect the rest portion of income in some other way ( and avoid paying tax on that portion ) I am comparing the private entrepreneurs owners to bookmakers thats all.
In other words Mr.Raghavan has to also accept that racing cannot survive without bookmakers because it is just not possible for the professionals connected with racing to meet the maintenance costs with the stake money offered ( or by betting in tote huge amounts to get the returns involved in maintenance costs) They are forced to approach the bookmakers..inevitable. Mr.Raghavan may be of the opinion that if the authorities cannot run the show truely and completely in the right way, let them close down. Mr.Raghavan may not mind stopping betting if the show is closed down. But many other punters who are badly hooked to this wont like closing down of the show.They are of the opinion that the show should continue in more or less the same way ( with 10% business ) People who want to be truely honest with club and government can continue to play in tote and thereby express their solidarity. It doesnt make any difference to the bookmakers whether honest bettors ( who are supporting tote ) play with them or not.
What I have expressed is purely my personal opinion. Some may agree ... some may not agree... But if I have hurt anybody's feelings I accept my apologies in advance.
Dr.Bashaar

Mad Max, I must say your maths is very poor and you are not fit for being a good handicapper. You will get a payment of Rs 37300/ and not Rs. 27300/. Pl check back your calculations and be careful in future, because it can mislead our friends.

@Syed,

Gross deduction including gst is 30% for exacta.

If you are having only winner exacta tkt, then from the total payout Rs. 10/- will be exempted towards cost of tkt and balance will be taxed 30%. Same thing if you have consolation (30%) ticket.

In case you are entitled for both winner+ consolation, then Rs. 20/- will be exempted.

If you have got 50000 and your total investment on that ticket is 1000, you will you will get following amount at RWITC, RCTC, DRC :=

1. Total Dividend declared 50,000
Less: Total Investment on same winning ticket, say Rs 1000 (Exempted from TDS)
Net Amount: 49,000
Less: Rs. 10000 exempted from TDS, Any amount exceeds 10000 is taxable at 30%
So taxable amount: 49,000 - 10,000 = 39,000
TDS Rate 30% on 39,000 = 11,700.
Your share = 39,000 - 11,700 = 27,300.

You will get Rs. 27300 at RWITC, DRC, RCTC in India. No Idea what is the situation at HRC and MRC.

At BTC and MyRC these beggars consider we punters are from Uganda, hence BTC applies Ugandan Rules.

1. They will give you Rs. 10 exemption for any winning on a single ticket.
2. Pay TDS @ 30% on 49,990 and take your share 70% and get lost that is the policy BTC employs. If you argue at the time of encashing the ticket they will politely tell you, we will give your TDS Certificate, you file the IT returns, you will get the refund from the IT Department.
3. However at the time filing IT returns, your CA will tell your there is no provision for refund.
4. You come back and if you argue with the officials at BTC, of course you will get the refund, you change the CA. If you ask under which section you will get the refund they will not reveal it.
5. If you go for a heated arguments with the Tote Manager, he will call one ex-employee of BTC Ramesh (he himself says he is the Auditor one among four in BTC). But the Accounts Department says Ramesh is now retired. He is always available at the call of Tote Manager's disposal to pacify agitating punters like me.
6. If you ask him to name a CA who knows the procedure to get the refund, he will give you one from his contacts, he will give you one number. He introduced me to a CA called Anthuraj. I contacted him at Catholic Club at Brigade Road (Remember he wont call you at his office). I handed over all relevant documents to him for filing the returns. Unfortunately, he has filed wrong Returns for me, and now I am expecting notice from IT for rectification within 120 days.
7. From Accounts Department to Tote Manager's office to Auditor's Department, there is a gang working they will not get the Exemption amount on winning ticket. They will not even allow you to get a refund properly.
8. As a last resort, I have written to RBI Governor, Finance Minister, PM, and also to the Income Tax Commissioner. Waiting for the reply. Let us see what is the BJP govt is going to do to dispel the doubt of an ordinary punter.