“Discover the taxation changes for online game winnings under Section 115BBJ and Section 194BA introduced by the Finance Bill, 2023. Stay informed about the 30% TDS on net winnings from games like Dream11 and Rummy, applicable from July 1, 2023. Ensure compliance to avoid penalties.”

Earlier there were no specific provision for taxation for winning from online games. Generally, no one pays on such winning and those who pays, that taxed under Income from other sources at slab rates.

For how much time this winning is stay away from the eyes of income tax, so new section 115BBJ is inserted by Finance Bill, 2023 for taxing net winning from online games at 30%. It means from FY 2023-24 winning from Dream 11 will be taxable @ 30%.

Further, Section 194BA also introduced for deducting taxes on net winnings from online Games.

Sr. No. Particulars Provision
1. Deductor Online Gaming Intermediary (e.g. Dream 11, Rummy, etc.)
2. Deductee User
3. Rate of TDS 30%
4. w.e.f. 01/07/2023
5. Applicability On Net Winning from Online Games
6. Time of Deduction at source At the time of withdrawal of the net winning from online games as well as on the remaining amount of net winning in the user A/c at the end of the financial year.
  • However, if net winning is comprised of wholly in kind or partly in cash and partly in kind &
  • Where amount to pay TDS is not sufficient then
  • The person responsible for deducting TDS, shall ensure before releasing the winning that tax has been paid in respect of net winnings.

Author Bio

Qualification: CA in Practice
Company: Pratik S Vanjari & Co.
Location: NASHIK, Maharashtra, India
Member Since: 20 Dec 2021 | Total Posts: 10
Mr. Pratik Vanjari is a founder of the Pratik S Vanjari & Co. with the tagline of "when you win, we win" He is member of the Institute of Chartered Accountants of India. Mr. Vanjari has a vast experience in the field of Domestic and International Taxation, Transfer Pricing, Company Laws and Busi View Full Profile

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One Comment

  1. Deepak chowdhury says:

    SIR TDS IS DEDUCTED 30PERCENT AFTER WITHDRAWAL OF WINNING AMOUNT BUT
    MY QUESTION IS IF A INDIVIDUAL INCOME LESS THAN 5 LAKHS AND DEDUCTED TDS FROM GAMING SHALL THAT TDS DEDUCTED IS REFUNDABLE.
    PLEASE REPLY
    YOURS REGARDS
    DEEPAK CHOWDHURY

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