A friend claims to have won around ₹7 crore from an online casino, and the withdrawal option is in USDT (crypto).
We’re trying to understand the correct and legal way to handle this in India.
From what I understand:
Online gaming winnings are taxed at 30% (no deductions).
If the platform is offshore, TDS may not be deducted, so tax needs to be self-reported.
Since the withdrawal is in USDT, there could also be crypto tax implications when converting to INR.
Questions:
Should anything be reported to the tax department before receiving the funds or only at the time of filing returns?
Is it advisable to consult a CA before even initiating the withdrawal?
What are the risks of funds getting frozen by exchanges or banks during conversion to INR?
Any best practices to ensure the funds remain compliant and “clean”?
This is the first time dealing with such a large amount, so any guidance would be appreciated