ITR Filing: Online gaming income? Here’s how to report income tax returns for FY25

ITR filing: As the government moves to ban online money-based games in India, with both houses of the parliament passing the ‘Promotion and Regulation of Online Gaming Bill 2025’, any income or loss generated from such games in FY25 must be adjusted while filing income tax returns.

Here’s how you can file income tax returns for income from online gaming for FY 25 —

Any income generated through online gaming is treated as ‘Income from Other Sources’ when filing income tax returns. Sections 115BBJ and 194BA of the Income-tax Act apply to income earned on different gaming platforms.

Under Section 115BBJ, income tax on net winnings for the previous fiscal year is levied at 30 per cent. Section 194BA, on the other hand, deals with tax deducted at source (TDS) on net gains credited to the taxpayer’s gaming account at the end of the financial year.

“If you’ve earned winnings through online gaming platforms during FY 2024‑25, these must be reported under ‘Income from Other Sources’ in your Income Tax Return. Tax law mandates that all online gaming winnings are taxable at a flat rate of 30% under Section 115BBJ, with TDS deducted at the same rate under Section 194BA of the Income Tax Act, 1961,” according to CA Shefali Mundra, tax expert at Clear Tax.

“Any TDS deducted will appear in Form 26AS (via a Form 16A) and must be reflected under the Schedule TDS section in your ITR. Importantly, losses from gaming can be adjusted against the income from online gaming,” Mundra added.

What is income from other sources?

Income from other sources is a residual category that includes all types of income not classified under the four main heads of income. Nonetheless, some earnings are consistently taxed under this category, such as winnings from lotteries, gifts, and interest on enhanced compensation, according to the Central Board for Direct Taxation(CBDT).

Promotion and Regulation of Online Gaming Bill 2025

‘The Promotion and Regulation of Online Gaming Bill, 2025’ seeks to tighten online gaming regulations by banning the operation, facilitation, and advertising of online money games. This move aims to address increasing concerns over addiction, money laundering, and financial fraud associated with these applications. The bill was passed in the Lok Sabha on Wednesday.

Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Taxpayers are advised to consult a qualified tax professional or refer to the official website of the Income Tax Department for accurate and up-to-date guidance before filing their returns.