How to File ITR for Online Casino Winnings in India?

Filing an Income Tax Return (ITR) for online casino or real-money gaming winnings in India is no longer optional. The tax rules are strict, special, and closely tracked by the Income Tax Department. Even small winnings can trigger reporting obligations, and ignoring them can lead to notices, penalties, and prolonged scrutiny.

Here is a detailed guide on how to file ITR for online casino winnings in India, using only the applicable rules, examples, and clarifications already in force for FY 2026–27.

Tax on Online Casino Winnings in India

Online casino and real-money gaming winnings in India are governed by a special tax regime under the Income Tax Act.

Under Section 115BBJ, all winnings from online gaming, including casino-style games, are taxed at a flat 30% rate, irrespective of your income slab. On top of this, a 4% Health and Education Cess applies, taking the effective tax rate to 31.2%.

This tax regime was introduced through the Finance Act, 2023, and it leaves no room for adjustments. No deductions are allowed, not for entry fees, platform commissions, bonuses, incentives, or losses. Even if your total income is otherwise low, this special rate still applies.

Online casino winnings are taxed at a special rate and cannot be reduced by losses.

What Are Net Winnings Under the New Law?

The law does not tax each individual game win. Instead, it focuses on net winnings over the financial year.

In simple terms: Net winnings = Total withdrawals – Total deposits (for the financial year)

This calculation is done at the platform level, not game by game. A player may win some games and lose others, but tax is computed on the overall net result of withdrawals and deposits during the year.

It is important to note that this figure may not always match a player’s own calculations. Platforms report net winnings directly to the Income Tax Department, and these figures appear in the Annual Information Statement (AIS).

Any mismatch between what you report in your ITR and what appears in AIS can trigger a notice.

TDS on Online Casino Winnings (Section 194BA)

Tax Deducted at Source (TDS) on online gaming winnings is governed by Section 194BA.

Under this provision a 30% TDS is deducted on net winnings. Deduction happens at the time of withdrawal or at the end of the financial year, whichever is earlier. The earlier ₹10,000 threshold no longer applies. Even ₹1 of net winnings is taxable.

The TDS deducted by the platform is reported against your PAN and appears in Form 26AS and AIS. This creates a clear digital compliance trail, making non-reporting easy for the tax department to detect.

Do You Need to File ITR If TDS Is Already Deducted?

Yes. Filing an ITR is mandatory, even if the platform has already deducted TDS. There are three key reasons-

1. AIS reporting: Your winnings and TDS are already visible to the tax department.
2. TDS credit: You can only claim credit for deducted TDS by filing an ITR.
3. Avoiding notices: Non-filing despite AIS entries can lead to scrutiny and tax notices.

TDS does not replace ITR filing; it only shifts part of the tax collection to the platform.

Which ITR Form to Use for Casino Winnings?

For most individuals earning online casino winnings, ITR-2 is the correct form, but  ITR-1 (Sahaj) cannot be used because it does not support special-rate income.
ITR-3 is applicable only in rare cases where gaming income is treated as business income.

Online casino winnings fall under a special rate income category, which is why ITR-2 is generally required.

Documents Required Before Filing

Before you begin filing your ITR, keep the following ready because these documents help ensure accurate reporting and prevent mismatches-

1. PAN and Aadhaar
2. Form 26AS
3. Annual Information Statement (AIS)
4. Platform win/loss or transaction statement
5. Bank statement showing withdrawals credited to your account

Where to Show Casino Winnings in ITR?

When filing your Income Tax Return, online casino winnings must be reported under the head “Income from Other Sources.” Within the return, this income is specifically disclosed in the section titled “Lottery, betting, gambling and online gaming.” It is important to report the taxable winnings amount, not the amount you received after TDS deduction.

Any losses incurred while playing online casino games should not be deducted while reporting this income, as the law does not permit loss adjustment for such winnings.Path:

How to Claim TDS Credit on Casino Winnings?

To correctly claim credit for the tax already deducted, you must first match the TDS amount with the entries reflected in Form 26AS. While filing the return, these details need to be entered under Schedule TDS, ensuring that the TAN of the gaming platform is accurately reflected.

If the TDS deducted by the platform exceeds your final tax liability, the excess amount may be refunded by the Income Tax Department after your return is processed.

Example Calculations (With Real Numbers)

To understand how taxation works in practice, consider a few common scenarios. In the first case, where a player has only casino income, net winnings of ₹1,00,000 attract tax at the effective rate of 31.2%, resulting in a tax liability of ₹31,200.

If the platform has already deducted ₹30,000 as TDS, the remaining ₹1,200 becomes payable at the time of filing the return.

In the second scenario, a low-income player earns ₹20,000 as net winnings. TDS of ₹6,000 is deducted at 30%. After adding cess, the total tax works out to ₹6,240, leaving a small balance payable while filing the return.

In the third scenario, a player deposits ₹1,00,000 during the year but withdraws only ₹90,000, resulting in net winnings of zero. In such a case, no tax is payable. However, reconciliation with AIS remains important to ensure that the figures reported by the platform match what is disclosed in the return.

Can You Claim Losses from Online Casinos?

The law is clear and leaves no scope for interpretation. Losses from online casino gaming cannot be set off against winnings, cannot be carried forward, and cannot be claimed as deductions. Even if a player ends the year with an overall loss, such losses are ignored entirely for tax purposes.

GST on Online Casino: Do Players Need to Pay

For Indian players, GST is not a personal compliance requirement when it comes to online casino gaming. Under the current legal position, real-money online gaming platforms are completely banned in India, which means no domestic platform is legally allowed to accept deposits for real-money play. As a result, there is no valid Indian transaction on which GST can be charged.

In practice, the only platforms accessible for real-money online casino play are offshore platforms. These platforms operate outside Indian jurisdiction and are not registered under Indian GST laws. Because of this, no GST is applicable on deposits made by Indian players on offshore online casino platforms.

Players are not required to file any GST returns, and there is no GST disclosure in the Income Tax Return. GST obligations, where they exist, are always platform-level compliances. For players, taxation remains limited to income tax on winnings, not GST on deposits.

What Happens If You Don’t Report Casino Winnings?

Failing to report online casino winnings can have serious consequences. Since transaction details are already available with the tax department through AIS and TDS reporting, any mismatch can trigger notices for under-reporting.

Penalties under Section 270A can range from 50% to 200% of the tax payable, along with interest under Sections 234B and 234C.

In many cases, non-reporting can also lead to prolonged scrutiny and repeated compliance follow-ups, making this a high-risk area for taxpayers. Include legal consequences:

Foreign Online Casinos and Tax Filing

For Indian residents, winnings from foreign or offshore online casinos are fully taxable in India. Such income must be reported under “Income from Other Sources,” and tax must be paid through self-assessment if no TDS has been deducted.

Schedule FSI is required only when the income is held in a foreign bank account. If the winnings are credited to an Indian account, normal reporting rules apply.

Step-by-Step ITR Filing Process (Portal Guide)

1. Log in to the Income Tax e-filing portal
2. Select ITR-2
3. Open Schedule OS (Other Sources)
4. Enter online gaming or casino winnings
5. Add TDS details from Form 26AS
6. Verify and submit using Aadhaar OTP

Due Date for Filing ITR on Casino Winnings
For most individuals, the due date is 31 July of the assessment year. Late filing can attract a late fee under Section 234F, in addition to interest.

Common Mistakes to Avoid

Some frequent errors include:

• Filing ITR-1 instead of ITR-2
• Reporting net profit instead of taxable winnings
• Ignoring AIS entries
• Not claiming TDS credit
• Assuming losses can reduce tax

Compliance Checklist

FAQs

Q: Is TDS enough or do I need to file ITR
TDS alone is not enough; filing ITR is mandatory.

Q: Which ITR for online gaming income?
In most cases, ITR-2.

Q: Can I reduce tax using losses?
No, losses cannot be adjusted or carried forward.

Editor’s Recommendations:

• The Indian Gambler’s Tax Guide (2026): Navigating TDS, 28% GST, and ITR
• Are Online Casinos Legal in India? State-by-State Guide (2026)

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