ITR Filing FY25: How Much Tax Will You Pay on Winning ₹60,000 in Online Gaming?

In ITR filing FY25, it is mandatory to report income from online gaming. As per the income tax rules, it is taxable as "Income from Other Sources". Thus, if you’ve profited from online gaming FY24-25, you’ll need to declare your winning amount, even if the platforms have already deducted TDS (Tax Deducted at Source). 

How Much Tax Will You Pay on Earning ₹60,000 Profit from Online Gaming?

Let’s say you won ₹60,000 on a gaming platform and paid ₹3,000 as an entry fee.

Net winnings = ₹60,000 - ₹3,000 = ₹57,000

 TDS @30% = ₹17,100

The platform will deduct ₹17,100 as TDS under Section 194BA, and credit the balance ₹42,900 to your account.

But you must report the full ₹57,000 as income when filing your Income Tax Return (ITR), and ensure the deducted TDS reflects in your Form 26AS or Form 16A.

ITR Filing FY25: No Deductions Can Be Availed on Income From Online Gaming

Under Section 115BBJ of the Income Tax Act, gaming income is taxed at a flat 30%. There are:

• No exemptions
• No deductions under Sections 80C to 80U
• No rebate under Section 87A

So, even if your total income is low, you’ll pay 30% tax on the gaming income.

How to File Your Return?

• Use ITR-2 or ITR-3, depending on your other sources of income.
• Report your winnings under the ‘Income from Other Sources’ section.
• Include gross winnings (₹57,000 in this case), not the amount received after TDS.
• Fill in the TDS Schedule with details from Form 26AS/Form 16A.

ITR Filing FY25: What If You Made a Loss in Online Gaming?

If you lost money on another game during the year, you can offset the loss against your gaming income before calculating tax. However, losses from online gaming cannot be set off against other heads of income, like salary or business.

Read more: ITR Filing FY25: Is Rent-free Housing, Cab Facility, and Sweat Equity Shares Taxable?

Conclusion

If you earned ₹60,000 from online gaming in FY25 with a ₹3,000 entry fee, your net taxable income is ₹57,000, and you’ll owe ₹17,100 in tax (likely deducted already). But you must still file your ITR, report the full income, and make sure it matches the records available with the Income Tax Department.

Neglecting to report it could lead to notices, penalties, or delays in refunds.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.