Explanation
Section 115BBJ of IT Act 1961 (carried into IT Act 2025) introduced from 1 April 2023 specifically covers online gaming income. Key points: (1) Taxed at 30% flat — same as lottery/crypto. (2) Deduction: only entry fee paid for the specific game; no deduction of losses from other games. (3) TDS under §194BA at 30%: deducted on net winnings at the time of withdrawal; additionally, the platform deducts TDS on the aggregate net winnings as of 31 March each year if not already deducted. (4) No minimum threshold for TDS — deducted from rupee one. (5) Platform deducts TDS which appears in Form 26AS/AIS. (6) Resident users of foreign platforms must self-report and pay advance tax — no TDS deducted by foreign platforms. Report in Schedule OS under 'Winnings from online games'. Verify on the income-tax portal before filing.