INCOME TAX6 Sept 2026
Bengaluru gamer lost ₹28 lakh after betting ₹2.6 crore—Why ITAT rejected tax on ₹2.33 crore winnings
Online gaming tax now applies to actual net winnings, not the gross amount credited to your gaming wallet. Bengaluru's Income Tax Appellate Tribunal ruled this in a case where a gamer staked over ₹2 crore on rummy and poker and suffered a net loss of about ₹28 lakh. The tax officer treated ₹2.33 crore of wallet inflows as taxable income. The tribunal disagreed. Players should keep buy-in records.
Key Statutory Highlights
- ITAT Bengaluru ruled that online real-money gaming winnings are taxable based on actual net winnings, not gross wallet credits.
- A Bengaluru gamer who put over ₹2 crore into rummy and poker ended with a net loss of about ₹28 lakh.
- The tax department had treated reported winnings of about ₹2.33 crore as income from other sources, but the tribunal accepted the net loss position.
Actionable Advice for Taxpayers / Founders:If you play real-money online games, calculate your actual net winnings for the year from buy-ins and withdrawals, and keep platform statements handy while filing your ITR.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: