Online Gaming Bill 2025: Here’s how you can file ITR for online gaming income

Both Houses of Parliament have cleared the Promotion and Regulation of Online Gaming Bill, 2025, on August 21, 2025. The Bill, passed in the Rajya Sabha without debate, prohibits gambling-style gaming platforms while promoting eSports and casual, non-monetary gaming. According to tax experts, individuals who earned or lost money on such platforms during FY25 must disclose the same in their income tax returns. The earnings from online gambling are taxed as “Income from Other Sources” under the Income-tax Act.

As mentioned in Section 115BBJ, a flat 30% tax is applied on net winnings, while Section 194BA mandates tax deduction at source (TDS) on net wins in gaming accounts at year-end. Notably, such income is ineligible for standard rebates or deductions under Sections 87A and 80C–80U. Further, any TDS deducted will be reflected in Form 26AS and must be reported in the ITR. 

Failing to disclose such income could attract heavy penalties. Taxpayers may face fines ranging from 50% to 200% of the tax due under Section 270A, along with interest under Sections 234B and 234C.

Here’s how you can file ITR for online gaming income.  

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How to file ITR for online gaming income

1. Log in to the e-filing portal
2. Next, choose the correct ITR Form- ITR-2 or ITR-3
3. Enter your net winnings under the “Income from Other Sources” section of the ITR.
4. Include the TDS deducted, which should be reflected in your Form 26AS (via a Form 16A), in the Schedule TDS section of your ITR.
5. If the tax deducted at source is less than your total tax liability, you will need to pay the remaining amount.
6. After reviewing and confirming all sections, submit the ITR and verify it using your Aadhaar-linked mobile number or other available options, and it’s done.