Tax on Online Gaming & Lottery Winnings: 30% Under 194BA/115BBJ
Last verified: June 2026, against the Income Tax Act provisions and CBDT rules cited below. Figures apply to FY 2025-26 (AY 2026-27). This is general information, not personal tax advice.
Won money on a fantasy-sports app, a rummy or poker platform, a TV game show or a lottery? That income is taxed at a flat 30% — with no deductions, no basic-exemption benefit, and no rebate. And the platform usually deducts TDS before you ever see the money. Here is how online-gaming and lottery winnings are taxed in India.
Online real-money gaming: Sections 115BBJ and 194BA
Since April 2023, winnings from online games have their own regime:
- Section 115BBJ taxes net winnings from online games at a flat 30% (plus 4% cess = 31.2%).
- Section 194BA requires the gaming platform to deduct TDS at 30% on net winnings — with no minimum threshold. Every rupee of net winnings is covered.
“Net winnings” are computed under Rule 133, broadly as: (amount withdrawn + closing balance) − (opening balance + your own deposits). This covers fantasy sports, rummy, poker, online quizzes with prizes, e-sports cash rewards and similar real-money apps.
Lotteries, game shows and betting: Sections 115BB and 194B
Winnings from lotteries, crossword puzzles, card games, TV game shows, horse racing and betting are taxed under Section 115BB at 30%, with TDS under Section 194B at 30% once winnings cross ₹10,000 (aggregated over the year from a payer). Winnings in kind (a car, gold) are also covered — the payer must ensure tax is paid on the market value.
What you cannot do
- No deductions under Chapter VI-A (80C, 80D, etc.) against these winnings.
- No benefit of the basic exemption limit — the 30% applies from the first rupee.
- No Section 87A rebate on this income.
- You cannot set off other losses against winnings.
You must still report it in your ITR
Even if TDS was deducted, you must declare the winnings in your return (usually ITR-2) under “Income from other sources” and reconcile the TDS against your AIS/26AS. Gaming income is increasingly tracked, and non-disclosure can trigger a notice.
Worked example (online gaming)
You deposit ₹20,000 over the year, withdraw ₹50,000, and end with a ₹10,000 balance. Net winnings = (50,000 + 10,000) − 20,000 = ₹40,000. Tax at 31.2% ≈ ₹12,480, which the platform deducts as TDS under 194BA.
FAQs
Is there a tax-free limit on online gaming winnings?
No. Section 194BA TDS applies with no threshold, and 115BBJ taxes net winnings at 30% from the first rupee.
Can I deduct the money I spent playing?
Your own deposits are accounted for in the “net winnings” formula, but you cannot claim Chapter VI-A deductions or set off other losses against winnings.
Do I report winnings if TDS was already deducted?
Yes. Declare the full winnings in your ITR and claim credit for the TDS.
What is the threshold for lottery/game-show TDS?
₹10,000 under Section 194B; above that the payer deducts 30% TDS.
