How to Declare Gaming Winnings in ITR India: Step-by-Step 2026

Learning how to declare gaming winnings in ITR is essential for anyone who has withdrawn money from an online gaming platform in India during 2025-26. The Finance Act 2023 introduced Section 115BBJ — a dedicated provision for online gaming income — creating both a new tax rate structure and a new reporting requirement. This guide explains exactly where to report your winnings, how to compute the taxable amount, and the key mistakes that trigger income tax notices.

Section 115BBJ: The Law That Governs Gaming Winnings

Section 115BBJ was inserted by the Finance Act 2023 and applies from Assessment Year 2024-25 onwards (i.e., income earned from 1 April 2023). It taxes net winnings from online games at a flat rate of 30%. Key features:

• The 30% rate applies from the very first rupee of net winnings — there is no basic exemption or minimum threshold.

• Add a 4% Health and Education Cess, and the effective tax rate is 31.2%.

• No deductions under Chapter VI-A (80C, 80D, etc.) are allowed against this income.

• The rebate under Section 87A does not apply, even if your total income is below ₹7 lakh.

• This section supersedes the old treatment of gaming income under 'Income from Other Sources.'

What Are Net Winnings? The Formula

The taxable figure is not your total withdrawals — it is your net winnings. The formula is:

Net Winnings = Total Withdrawals − (Opening Balance at Start of Year + Total Deposits During the Year)

Example: You started the year with ₹2,000 in your gaming account, deposited ₹40,000 over the year, and withdrew ₹55,000. Your net winnings = ₹55,000 − (₹2,000 + ₹40,000) = ₹13,000. Tax at 30% = ₹3,900 plus ₹156 cess = ₹4,056 total.

If your net winnings are negative or zero (you deposited more than you withdrew), there is no tax liability and nothing to declare under Section 115BBJ.

Which Schedule to Use: Schedule VDA

Gaming winnings are reported in Schedule VDA (Virtual Digital Assets) within ITR-2 or ITR-3. Despite the name, this schedule covers online gaming income from AY 2024-25. Within Schedule VDA, you will find a row specifically labelled for 'Income from Online Games' or 'Net winnings from online games under Section 115BBJ.' Enter your net winnings figure in this row.

Do not report gaming income under 'Income from Other Sources' or under 'Winnings from lotteries, puzzles, races, etc.' — those fall under Section 115BB, which is a different provision. Section 115BBJ is specifically for online gaming income and has its own dedicated field in Schedule VDA.

5 Steps to Declare Gaming Winnings in Your ITR

1. Download your platform statement. Log into each gaming platform you used and download the annual transaction statement showing all deposits, withdrawals, and opening balance.

2. Calculate net winnings. Apply the formula: withdrawals minus (opening balance plus deposits). Do this separately for each platform if you used more than one.

3. Check Form 26AS and AIS. Log in to the income tax portal and verify that TDS deducted by the platform under Section 194BA appears in your Form 26AS and Annual Information Statement. Discrepancies should be resolved with the platform before filing.

4. Select the right ITR form. Use ITR-2 if you have salaried income with gaming winnings and no business income. Use ITR-3 if you also have business or professional income. Do not use ITR-1.

5. Fill Schedule VDA. In Schedule VDA, enter the net winnings figure under the Section 115BBJ row. The system will automatically compute 30% tax on this amount and add it to your total tax liability before calculating the cess.

How to Claim Your TDS Credit Under Section 194BA

Section 194BA requires the gaming platform to deduct TDS at 30% from net winnings at the time of each withdrawal. This TDS is deposited to the government in your PAN. When you file your ITR, the TDS already deducted acts as an advance payment of tax and reduces your final liability.

In your ITR, go to the TDS schedule and verify that the amount shown under Section 194BA matches what the platform deducted. The income tax portal pre-fills this from your Form 26AS. If the TDS has been fully deducted and matches your computed liability, your net tax payable will be zero (or a refund may be due if excess TDS was deducted).

Important Restrictions You Must Know

Several rules that apply to other income types do not apply to gaming winnings under Section 115BBJ:

• No basic exemption: Tax applies from rupee one. Even if your total income is below ₹2.5 lakh, gaming winnings are still taxed at 30%.

• No 87A rebate: The rebate of up to ₹12,500 or ₹25,000 (under new regime) for incomes below ₹5-7 lakh is not available against Section 115BBJ tax.

• No Chapter VI-A deductions: You cannot reduce your gaming income by claiming 80C (PPF, ELSS, etc.), 80D (health insurance), or any other deduction.

• No loss set-off: If you have losses from other heads (like capital gains), you cannot set them off against gaming income.

State Legal Context for Online Gaming

The tax obligations above apply regardless of which Indian state you are in. For context on the legality of online gaming in specific states, see our guides for Haryana and Delhi. You can also review the central government's online gaming guidance at MEITY's portal.