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Currently, I am working in USA on H1B visa. I came to US in JAN 2015. So for income tax purpose, I am Non-Resident Indian for financial year 2015-16.

I have query regarding lottery winnings outside India. After reading income tax rules on web, I understood that if NRI wins lottery in USA, the lottery winnings can be transferred to Indian Bank account legally.

If I win lottery in April 2016 and permanently come back to India in Jun 2016, I think I will be considered Resident Indian for financial year 2016-17. In this case, will I be able to transfer lottery won in April 2016 to my Indian bank account? Will it be considered illegal?

If yes, that means, I will have to stay in US at least till Oct 1, 2016 so that my India stay will get reduced to less than 182 days and hence I will be considered NRI for FY 2016-17. The lottery won in April 2016 will be legal in this case. Please advise. Thank You!

Dheer
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Sambhaji
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1 Answers1

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The rules are not very clear. If you are Indian resident, you are not allowed to use Foreign Exchange outside India for betting and gambling. However even ifs its illegal; any gains are taxable.

If you are non-resident and win lottery you can transfer the gains to India and there is no tax applicable.

There is no clarity if you are non-resident and earn a lottery and then change the tax status as resident Indian. Please consult a professional CA for specific case.

Dheer
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