TDS on Online Gaming Winnings in India 2026 — Full Rules
Section 194BA, the 30% TDS slab, net-winnings formula and exactly how SH7 calculates and deducts tax on your withdrawals.
The law in one paragraph
Section 194BA of the Income Tax Act (effective April 2023, fully in force in 2026) requires every Indian online-gaming operator to deduct 30% TDS on net winnings at the time of withdrawal — and again at year-end on the closing balance.
The net-winnings formula
Net winnings = total withdrawals + closing balance − total deposits − opening balance. TDS is 30% of that figure, no thresholds.
When SH7 deducts TDS
At every withdrawal where cumulative net winnings have increased since the last deduction. SH7 shows the TDS amount upfront on the withdrawal screen before you confirm.
Year-end true-up
On 31 March, SH7 calculates total net winnings for the financial year and either deducts additional TDS from your closing balance or carries forward any over-deduction.
Form 26AS and ITR filing
Every TDS deduction reflects in your Form 26AS within 7–10 business days. Report gaming income under 'Income from Other Sources' when filing your ITR.
Worked example
Deposit ₹10,000. Win to ₹25,000. Withdraw ₹20,000. Net winnings = 20,000 − 10,000 = 10,000. TDS = ₹3,000. You receive ₹17,000.
Frequently asked questions
What is the TDS rate on online gaming in India?
30% under Section 194BA, with no minimum threshold.
Is TDS deducted on every withdrawal?
Only when cumulative net winnings have increased since the last deduction.
Can I claim TDS back?
If your total taxable income falls in a lower slab, the excess TDS is refundable when you file your ITR.