ITR Filing for FY25: A Guide to Reporting Your Online Gaming Income
With the passing of the ‘Promotion and Regulation of Online Gaming Bill, 2025’ by the Lok Sabha, online money-based games are set to be banned in India. However, if you’ve earned income from these platforms during the Financial Year 2024-25 (FY25), you must still report it while filing your income tax returns.
Here’s a simple guide on how to handle your online gaming income and tax obligations for FY25.
1. How is Online Gaming Income Taxed?
Income from online gaming is categorized as ‘Income from Other Sources’ in your ITR. The Income-tax Act has two key sections that apply:
- Section 115BBJ: This section mandates a flat 30% tax on your net winnings from online gaming for the previous financial year.
- Section 194BA: This section governs the Tax Deducted at Source (TDS). The gaming platform is required to deduct TDS at a rate of 30% on your net gains at the end of the financial year and deposit it with the government.
2. How to Report It in Your ITR
- Mention as ‘Income from Other Sources’: All your winnings from online gaming platforms in FY25 must be declared under the ‘Income from Other Sources’ head in your Income Tax Return.
- Adjusting Losses: A key point to remember is that you can adjust losses from gaming against your income from online gaming.
- Check Form 26AS: Any TDS deducted by the gaming platforms will be reflected in your Form 26AS through a Form 16A. You must accurately report this TDS amount in the Schedule TDS section of your ITR to get credit for the tax already paid.
3. The ‘Promotion and Regulation of Online Gaming Bill, 2025’
This new legislation aims to tighten regulations on the online gaming industry. By banning online money games, the government seeks to combat growing concerns over financial fraud, money laundering, and addiction. The bill passed in the Lok Sabha on Wednesday, and while it will shape the future of the industry, your income from FY25 must still be reported as per the existing tax laws.