Tax on gambling winnings in India is unusually harsh and unusually simple. Thirty percent of net winnings, deducted at source, no threshold, no expenses, no set-off of losses against other income. Whether the operator is Indian or offshore does not change your obligation to declare.
The rules that apply
| Provision | What it does |
|---|---|
| Section 115BBJ | Charges tax at 30% on net winnings from online games |
| Section 194BA | Requires tax to be deducted at source on net winnings from online games, computed at the end of the financial year or at withdrawal, with no minimum threshold |
| Surcharge and cess | Applied on top of the 30%, so the effective rate is higher |
| Section 194S | Separately applies 1% TDS to transfers of virtual digital assets, relevant if you use crypto rails |
What net winnings means
Net winnings are computed across the year rather than per win: broadly, total withdrawals plus closing balance, less total deposits and opening balance. That is why a player who wins and loses repeatedly is taxed on the net position rather than on each winning hand, and it is why keeping your own deposit and withdrawal record matters.
Records worth keeping
- Every deposit: date, amount, method, reference.
- Every withdrawal: date, amount, method, reference.
- Account statements from the operator, exported periodically. Accounts get closed and access disappears.
- Exchange statements if you used crypto, since the virtual digital asset rules apply separately.
- Bank statements showing the corresponding entries.
GST, for completeness
Goods and services tax at 28% on the full face value of deposits applies to online money gaming supplied in India. For a player using an offshore operator this is not something you pay separately at the cashier, but it is part of why the domestic industry restructured, and it comes up constantly in coverage of the sector.
Practical summary
- Assume 30% plus surcharge and cess on net winnings for the year.
- Keep contemporaneous records; reconstructing a year of play afterwards is painful.
- Do not assume the absence of TDS means the absence of liability.
- Get professional advice if the amounts are material.
Related: legal status · crypto rails and their own tax surface
Frequently asked questions
How much tax do I pay on casino winnings in India?
30% on net winnings under section 115BBJ, with tax deducted at source under section 194BA, plus applicable surcharge and cess. There is no minimum threshold and no deduction for expenses or losses.
How are net winnings calculated?
Broadly as total withdrawals plus closing balance, less total deposits and opening balance, computed across the financial year rather than per win.
Do I pay tax if the offshore casino did not deduct TDS?
Yes. The absence of withholding does not remove the income from charge. The compliance burden simply falls on you at filing time.