Online gaming winnings: ₹100 profit, ₹30 tax. No exceptions.
"I won ₹50,000 on a fantasy cricket app. How much tax do I owe?"
Winnings made through playing online games such as fantasy sports (Dream11, My11Circle) or online card games (PokerBaazi, Adda52) or any other real-money games are taxable @30% under section 115BBJ (Finance Act 2023).
TDS at 30% is deducted by the platform on all the winnings earned beyond ₹100 (the threshold was ₹10,000 in fiscal year 2023-24). The TDS will be visible in Form 26AS of yours. In case you fail to file ITR, you lose out on the tax credit for TDS.
Remember that a winning of ₹50,000 does not imply an income of ₹50,000. Net income would be calculated by deducting the entry fees for that particular game from the winnings.
What the law says — exact provisions
Section 115BBJ
Online gaming winnings taxed at 30% flat. No deduction allowed. No loss set-off. Effective FY 2023-24.
Section 194BA
TDS @ 30% on net winnings. Platforms must deduct TDS on every withdrawal or at year-end balance.
Schedule OS
Declare gaming winnings under "Income from Other Sources" in ITR. Matches with Form 26AS TDS.
Section 139(1)
File ITR to claim TDS credit. No ITR = no refund if excess TDS deducted.
CA Rishabh's verdict
Bottom line
TDS is already deducted by the platform. File ITR to claim credit. Your net gaming income goes in Schedule OS at 30% tax. Keep transaction history from gaming apps.