Use the 194B 194BA TDS Calculator to estimate TDS on lottery winnings and online-game net winnings. Check the 30% TDS rate, ₹10,000 single-transaction threshold and Rule 135 calculation inputs for FY 2026-27.
The Section 194B / 194BA Lottery & Online Gaming TDS Calculator estimates TDS on lottery and other game winnings and on net winnings from online games. It helps lottery winners, online-game users, CAs, accountants and finance teams check a payout or withdrawal before reconciling the deduction.
For payments or credits from 1 April 2026, the Income-tax Act, 2025 governs TDS and consolidates the earlier TDS sections into Section 393. The familiar 194B and 194BA labels remain useful for identifying the underlying provisions, while current filings use the corresponding new-Act table items. Income Tax Department's TDS transition guidance confirms this transition.
Section 194B covers winnings from lotteries, crossword puzzles, card games, gambling, betting and other specified games, excluding online games. For current transactions, the threshold is more than ₹10,000 in a single transaction and the TDS rate is 30%. The Income Tax Department's TDS guidance confirms the rate and threshold.
Online-game winnings use a separate net-winnings calculation. Rule 135 of the Income-tax Rules, 2026 covers the first withdrawal, subsequent withdrawals and the year-end user-account balance. The notified Income-tax Rules, 2026 provide these formulas.
Section 194B formula
If winning amount ≤ ₹10,000:
TDS = ₹0
If winning amount > ₹10,000:
TDS = Winning amount × 30%
Net amount = Winning amount − TDS
The Finance Act, 2025 changed the Section 194B threshold from an aggregate financial-year test to ₹10,000 in respect of a single transaction, effective 1 April 2025. The official Finance Act 2025 amendment records that change.
Section 194BA online-game formulas
For FY 2025-26 and earlier periods governed by the Income-tax Act, 1961, Section 194BA applies. From 1 April 2026, the corresponding TDS provision sits in Section 393 of the Income-tax Act, 2025. The 30% rate continues. The 2026 Finance Bill rate table lists 30% for net winnings from online games.
First withdrawal during the tax year:
Net winnings = A − (B + C)
A = amount withdrawn
B = aggregate non-taxable deposits up to that withdrawal
C = opening user-account balance
Subsequent withdrawal during the tax year:
Net winnings = A − (B + C + E)
A = aggregate withdrawals up to and including the current withdrawal
B = aggregate non-taxable deposits up to the current withdrawal
C = opening user-account balance
E = earlier net winnings on which TDS was already deducted
Year-end calculation:
Net winnings = (A + D) − (B + C + E)
A = aggregate withdrawals during the tax year
B = aggregate non-taxable deposits during the tax year
C = opening user-account balance
D = closing user-account balance
E = earlier net winnings on which TDS was already deducted
Rule 135 sets the relevant net-winnings result to zero when the deduction inputs equal or exceed the withdrawal base. Rule 135 of the notified Income-tax Rules, 2026 gives the statutory formulas.
The calculator does not add non-resident surcharge or cess. The Income Tax Department's current TDS guidance states that applicable surcharge and cess can increase withholding for non-residents. Current TDS guidance provides the rate treatment.
Example 1: Lottery winnings under Section 194B
Suresh receives ₹50,000 from a lottery in one transaction. The amount exceeds the ₹10,000 single-transaction threshold.
Winning amount = ₹50,000
TDS = ₹50,000 × 30% = ₹15,000
Net amount = ₹50,000 − ₹15,000 = ₹35,000
Suresh's base TDS is ₹15,000, leaving ₹35,000 after the base deduction. The threshold applies to the transaction as a whole; TDS does not apply only to the amount above ₹10,000. Official Section 194B threshold amendment.
Example 2: First online-game withdrawal
Priya withdraws ₹1,00,000. Her opening user-account balance is ₹20,000 and her qualifying non-taxable deposits up to the withdrawal total ₹30,000.
A = ₹1,00,000
B = ₹30,000
C = ₹20,000
Net winnings = ₹1,00,000 − (₹30,000 + ₹20,000)
= ₹50,000
TDS = ₹50,000 × 30%
= ₹15,000
Priya has ₹50,000 of net winnings for this calculation and ₹15,000 of base TDS. Rule 135 supplies the first-withdrawal formula. Notified Income-tax Rules, 2026.
The Income-tax Act, 2025 applies to TDS obligations arising from payments or credits on or after 1 April 2026. The Income Tax Department says the earlier TDS sections from 192 to 194T are consolidated mainly under Sections 392 and 393 of the new Act. Official TDS transition FAQ.
For the old Act period up to 31 March 2026, Section 194B and Section 194BA remain the familiar references. For the new Act period, the corresponding Section 393 table item must be used for TDS reporting. The underlying TDS policy and rates were largely retained. Income Tax Department TDS compliance guidance.
The Section 194B threshold changed from an aggregate amount exceeding ₹10,000 during the financial year to ₹10,000 for a single transaction from 1 April 2025. Finance Act 2025 amendment.
The 2026 Finance Bill lists 30% for winnings from lotteries, puzzles, card games and other games, excluding online games, and 30% for net winnings from online games in the TDS rate table. Official Finance Bill 2026.
Rule 135 of the Income-tax Rules, 2026 carries the online-game net-winnings formulas into the new Act framework. The year-end formula includes earlier net winnings on which TDS has already been deducted. Notified Income-tax Rules, 2026.
Yes. The current TDS rate for winnings covered by the lottery and other-game provision is 30%. Section 194B applies when the winning amount exceeds ₹10,000 in a single transaction. The rule covers lotteries, crossword puzzles, card games and other specified games, while online games follow the separate online-game provision.
The current Section 194B threshold is ₹10,000 for a single transaction. The earlier rule used an aggregate financial-year threshold. Finance Act 2025 changed the wording from 1 April 2025, so a current calculation should not add separate winning transactions merely to test the ₹10,000 limit.
No. The online-game calculation starts with net winnings under Rule 135. The formula considers withdrawals, non-taxable deposits and the opening balance. For later withdrawals and the year-end calculation, it also considers earlier net winnings on which TDS was already deducted.
The TDS rate for net winnings from online games is 30%. The rate applies to the net-winnings amount calculated under the prescribed formula. A ₹1,00,000 withdrawal therefore does not automatically create ₹30,000 of TDS; first calculate the Rule 135 net-winnings base for the relevant withdrawal stage.
For a first withdrawal, subtract qualifying non-taxable deposits and the opening user-account balance from the withdrawal amount. If those two amounts equal or exceed the withdrawal, Rule 135 treats the net winnings for that withdrawal as zero. The calculator applies this floor before multiplying by the 30% rate.
Yes. A subsequent withdrawal uses aggregate withdrawals up to that withdrawal, aggregate non-taxable deposits, the opening balance and earlier net winnings on which TDS was already deducted. The year-end formula also includes the closing balance and subtracts earlier taxed winnings.
Yes. The 30% figure is the base rate for these winnings. The Income Tax Department's TDS guidance states that applicable surcharge and health and education cess can increase withholding for a non-resident. The calculator therefore shows the base 30% calculation and does not attempt a full non-resident withholding computation.
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