How is TDS (Tax Deducted at Source) calculated on my winnings?
In 2026, TDS (Tax Deducted at Source) on online gaming winnings in India follows the standardized regulations set by the Finance Act. On Indwin 7, TDS is calculated based on Net Winnings rather than the total withdrawal amount.
The Standard Calculation Formula
As per current law, a 30% TDS is applied to your net winnings at the time of withdrawal or at the end of the financial year.
Key Rules for Indwin 7 Players:
30% Rate: The tax rate is a flat 30% on the profit component.
Net Winnings Basis: You are only taxed on your winnings (profits). If you deposit ₹1,000 and withdraw ₹1,000, no TDS is deducted because your net winning is zero.
Threshold: Previously, there was a ₹10,000 threshold, but currently, TDS is applicable on any amount of net winnings, regardless of how small.
TDS Certificate: Indwin 7 is required to provide you with a TDS certificate (Form 16A) quarterly, which you can use to claim credit when filing your Income Tax Return (ITR).
Example Scenario:
You deposit ₹5,000.
You play and your balance grows to ₹12,000.
You request a withdrawal of the full ₹12,000.
Calculation: ₹12,000 (Withdrawal) — ₹5,000 (Deposit) = ₹7,000 (Net Winnings).
TDS Deduction: 30% of ₹7,000 = ₹2,100.
Final Amount Received: You will receive ₹9,900 in your bank account (₹12,000 — ₹2,100).
Note: Bonuses and promotional credits are usually treated as «deposits» or non-taxable until they are converted into withdrawable cash winnings.
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