What is meant by ILLEGAL Bets ??

Was going through the posts by Prakash and Vinod and felt obliged to clarify issues regarding the betting scene in India.Most racegoers are aware of the way the Bookie operate.It is a time tested system which has been going on for decades and benefits the Bookies and their patrons
( which would Include Owners , Trainers , Jockeys and regular Punters )


The word ILLEGAL being used by the Authorities is a JOKE as 99.99 % of TURNOVER is done at NIL Tax or Half tax ( strictly speaking it is not half tax which means 50 % as actual rates payable at bangalore is 9 % ) The actual OFFICIAL rate being 25 % for Local races and 20 % for off course races.

The Official turnover figure accounted for remitting the Betting taxes to the Government is around 1 % of the actual business for the day. Rest 99 % is done at half tax which is TAX collected by the BOOKIE but not remitted to the Government COFFERS.

Is there any word for this ??? I need to check with the dictionary and inform the CLUB and the tax Authorities.

When the TAX is blatantly collected by the bookies and nothing is done to stop this , why target the small time Middlemen who have to earn their livelihood in the races.Every big owner be it a MAM Ramaswamy , K N Dhunjibhoy , Haresh Mehta have to BET to sustain in this FIELD.There are a few exceptions but those Owners are Honorable and are in it for the love of the Sport.

Most of the racing officials also do BET.In normal circumstances , the Stake money is insufficient to remain in business. Betting on horses is the only way BIG TIME operators ( Owners , trainers ) can survive.Collectively by doing business with Bookies at HALF TAX , is that not a ILLEGAL BET.How can the RWITC or the HRC target only a few while allowing the big sharks to escape from the authorities.When they themselves are BETTING at half TAX , what moral right do they have to brand this as ILLEGAL.


What happens to this 9 % TAX collected ??

Well it is used to meet the daily stall fees, for meeting the Staff Salaries , Mobile expenses , for paying the minimum betting tax , for paying off the OFFICIALS of the CLUB ( also known as BRIBE )to pay off the law enforcement officials to ensure that they are not BOOKED for collecting but non remitting Taxes.This 9 % also helps them to balance the books.Bets accepted on well backed Winning Horses usually lead to substantial losses.The bookies do manage to Balance the bets in many cases , but where the risk is left OPEN this TAX collected comes to their rescue.

While on this matter , one also needs to have a re look on the INCOME Tax deducted by the clubs as the methodology is not common across all CLUBS though the FINAL TAX is credited to the Union Government.Each Club interprets the LAW according to their own convenience and the hapless punters are the losers.It is indeed an outdated Tax law which needs to be set right as One has to see the PAYOUT in the right perspective.Paying Taxes on a Winning bet and then ending the day on a LOSS is something many of us have gone through.

Most of the profits are just seen on paper as racing being a continuous activity , the Losses usually exceed the Profits.While Tax laws have to be followed , the least the clubs could do is to follow ONE COMMON rule regarding deduction.While some clubs deduct the dividend in excess of Rs 2 500 , many others deduct the total DIVIDEND received which is plain CHEATING as the LAW clearly states that CASUAL Income up to Rs 2 500 is exempt.

As far as betting tax is concerned , I do feel that the official tax rates payable to the club via the is not an issue . Punters who pay 9 % can afford to pay the extra amount as long as the dividend received is free of TAX. What happens is that any payout above a certain limit
( Rs 2500 at present ) attracts tax and even Small bets placed with the bookies would lead to Tax deducted at source.Imagine a bet of Rs 1 000 placed at 3 to 1.Going by the TDS rules in place , the Bookie would have to deduct tax on Rs 3000.Losing Rs 1200 towards Betting Tax and Income Tax is not a worthwhile proposition.To avoid this deduction and subsequent remittance to the government , bookies have to issue SEVERAL betting slips for smaller denomination which is a cumbersome process.Those backing longer shots will not be able to bet with the Bookies.The betting operations with the BOOKIES across the country are not computerised which creates further problems.This is a major issue as the Bookies are not equipped to deduct tax and then make the payment in the 15 minute period between races.

While a few individuals may not have the courage to state their position in this matter , i for ONE state unequivocally that Most of my bets are DONE at NIL RATE ( outside Bookie ) or HALF Rate ( inside CLUB ) and for which i have no regrets.

Morality and Business don't go together.Besides i don't have a choice in this matter. If i ask by bookie to COLLECT the BETTING TAX of 25 % and give me a Confirmation SLIP , he may refuse to do business , asking me to look for other avenues for betting.While the tote is an option one has to factor in the Income tax deduction and take the tickets accordingly or be prepared to lose 30 % as Income TAX.Even if one is prepared to pay the TAX , one may not be able to take the tickets due to the Long Q in the counters .In the 15 to 20 minutes time interval between races it is indeed a difficult task to finalise the bet and then be able to Take TOTE tickets.

I feel comfortable to bet with the bookies.


shyam