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sonali gujare   28 December 2017

Tds on winning of online game

Pls. guide on applicability of TDS deduction on the winning of online games like online rummy , online poker and online fantasy cricket etc. 


 4 Replies

R.Ramachandran (Advocate)     28 December 2017

Yes, TDS is to be effected on those items.

Megha   05 February 2022


Winning from online card games are trated as casual income and are charegable to tax under Section 56(2)(ib) of the Income-tax Act, 1961 (Act) by virtue of definition of income given under Section 2(24)(ix) of the Act.  

Section 194B of the Act provides for deduction of tax source on winning from lotteries and crossword in accordance with the rates in force, if the amount of winnings exceed INR 10,000.  The applicable rates are 30% plus cess of 4% and surcharge, if applicable.  

Best regards,

Wic Coe   11 February 2023

It depends on the game you are playing. Generally, TDS is not applicable on winning of online games. However, if you are playing a game of chance like satta, then TDS may be applicable. It is best to check with the game provider to know the exact rules and regulations.

Sanskriti Tiwari   08 December 2023

The applicability of TDS (Tax Deducted at Source) on winnings from online games like rummy, poker, and fantasy cricket is determined by Section 194B of the Income Tax Act, 1961. According to this section, any winnings exceeding Rs. 10,000 from lotteries, crossword puzzles, card games, or other games of any sort are subject to a 30% TDS deduction.

The applicability of TDS on online game winnings has been a matter of debate. The legality often depends on whether these games are predominantly based on skill or chance. Courts have often ruled that games predominantly based on skill rather than chance might not be considered gambling and therefore not subjected to TDS.

In the case of Gurdeep Singh Sachar vs. Union of India (2013), the Punjab and Haryana High Court ruled that poker is a game of skill and not chance, thus winnings from poker games might not attract TDS.

However, this varies on a case-by-case basis, and recent judgments or amendments might have altered this landscape. 

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