Original study · India
The real tax burden on Indian online gaming (2026)
Last updated
Summary
India taxes an online-gaming player twice: 28% GST on every deposit (since October 2023) and 30% TDS on net winnings (Section 194BA, no minimum threshold). This study calculates the combined effect. Across nine deposit-and-win scenarios, a winning player loses roughly 29–30% of the realised pot to tax — and at small win multiples, the two taxes together can swallow well over half of the actual winnings.
Key findings
- A player who turns ₹1,000 into ₹10,000 pays ₹280 GST plus ₹2,700 TDS and takes home ₹7,300 — keeping only about 73% of the pot.
- At a small win multiple the bite is far harsher: a player who merely doubles ₹1,000 to ₹2,000 loses ₹580 to tax — that is 58% of the ₹1,000 actually won.
- The effective share of the withdrawal lost to tax sits steady at 29–30% across every scenario, because TDS dominates and tracks winnings directly while GST is a fixed front-loaded cost.
- GST is unavoidable and unrefundable — it is taken on the deposit regardless of whether the player wins or loses, so a losing player still pays the full 28% on what they put in.
Scenario table
| Deposit | 28% GST on deposit | Withdrawal value | Net winnings | 30% TDS | Final take-home | Effective % lost |
|---|---|---|---|---|---|---|
| ₹1,000 | −₹280 | ₹2,000 | ₹1,000 | −₹300 | ₹1,700 | 29% |
| ₹1,000 | −₹280 | ₹5,000 | ₹4,000 | −₹1,200 | ₹3,800 | 30% |
| ₹1,000 | −₹280 | ₹10,000 | ₹9,000 | −₹2,700 | ₹7,300 | 30% |
| ₹5,000 | −₹1,400 | ₹10,000 | ₹5,000 | −₹1,500 | ₹8,500 | 29% |
| ₹5,000 | −₹1,400 | ₹20,000 | ₹15,000 | −₹4,500 | ₹15,500 | 30% |
| ₹10,000 | −₹2,800 | ₹25,000 | ₹15,000 | −₹4,500 | ₹20,500 | 29% |
| ₹10,000 | −₹2,800 | ₹50,000 | ₹40,000 | −₹12,000 | ₹38,000 | 30% |
| ₹20,000 | −₹5,600 | ₹50,000 | ₹30,000 | −₹9,000 | ₹41,000 | 29% |
| ₹25,000 | −₹7,000 | ₹1,00,000 | ₹75,000 | −₹22,500 | ₹77,500 | 30% |
“Withdrawal value” is the total the player withdraws. “Net winnings” = withdrawal − deposit (opening balance assumed zero, per Rule 133). “Effective % lost” = (GST + TDS) ÷ withdrawal value. GST is taken at deposit and is not refundable; TDS is creditable against your final tax when you file an ITR. All figures rounded to the nearest rupee.
Methodology
Two separate taxes apply to a real-money-gaming player, at two different moments, under two different authorities:
- 28% GST on the deposit. Under the CBIC notification
effective 1 October 2023, GST is levied at 28% on the full face value of
every deposit into a real-money game. We model it as
GST = 0.28 × deposit, taken up front and not refundable — it goes to the government, not the operator. See 28% GST explained. - 30% TDS on net winnings. Under CBDT Section 194BA and
Rule 133 (effective 1 April 2023), the operator deducts 30% TDS on net
winnings, with no minimum threshold. Net winnings =
withdrawal − deposits − opening balance; we set opening balance to zero, sonet winnings = withdrawal − depositandTDS = 0.30 × net winnings. See TDS under 194BA.
Final take-home = withdrawal − TDS. The effective percentage
lost is the combined tax (GST + TDS) divided by the withdrawal value.
TDS is creditable: it is reported against your PAN in Form 26AS / AIS and
offsets your final income-tax liability when you
file your ITR, and any
excess can be reclaimed via a
TDS refund claim. GST is not
creditable for a player. Scenarios are illustrative whole-rupee values and
do not constitute tax advice.
Cite this page
Attribution string:
Source: PayoutMitra, “The Real Tax Burden on Indian Online Gaming (2026)” (https://www.payoutmitra.com/data/rmg-player-tax-burden-2026), last updated 25 June 2026.
Canonical URL:
https://www.payoutmitra.com/data/rmg-player-tax-burden-2026
Released under CC BY 4.0. Free to reproduce, embed or build on with attribution and a link back.
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194BA TDS calculatorPlug in your own deposit and withdrawal figures to estimate your TDS.
Online gaming tax in India (2026)The full legal picture on GST, TDS and ITR filing for gaming income.
PayoutMitra is an independent help resource and does not operate or promote any gaming service. Under PROGA 2025, online money games are banned; these figures describe the tax mechanics that applied to past play and to recovery payouts. Information only — not legal or tax advice.