Online betting in India is expanding fast. Cricket, football, and casino markets are more active than ever. With higher participation comes higher tax responsibility. In 2026, TDS rules on betting winnings are strict and clear. Every Indian player must understand them.
If you use Reddy Anna, knowing how tax works will help you manage your profits better. This guide explains everything in simple language and short sentences for better clarity.
What Is TDS on Betting Winnings?
TDS stands for Tax Deducted at Source. It means tax is deducted before your winnings are credited to your account. You receive the amount after tax deduction.
In 2026, the government applied a flat 30 percent tax on net winnings from online betting and gaming platforms. This rule applies across platforms, including Reddy Anna Book.
Applicable Tax Rate in 2026
The tax structure is simple but strict.
Key points:
Flat 30 percent tax on net winnings
No basic exemption benefit
No deduction of expenses
No adjustment of betting losses
PAN card mandatory
Even small profits are taxed at the same rate.
How Net Winnings Are Calculated
Many players think tax is deducted from the total withdrawal. This is incorrect. Tax applies only to net winnings.
Net Winnings Formula:
Total Withdrawals – Total Deposits = Net Winnings
Example:
Total deposit: Rs 40,000
Total withdrawal: Rs 65,000
Net winnings: Rs 25,000
TDS at 30 percent: Rs 7,500
You receive Rs 57,500 after deduction.
Always review your transaction history through Reddy Anna Login to track deposits and withdrawals accurately.
When Is TDS Deducted?
TDS can be deducted in different situations.
Common cases include:
At the time of withdrawal
At the end of the financial year
When the account shows an overall profit
Active members of the Reddy Anna Club who place frequent bets should monitor their annual net winnings carefully.
PAN and KYC Requirements
PAN verification is compulsory. Without valid PAN details:
Higher tax may be deducted
Withdrawals can be delayed
TDS credit may not reflect in Form 26AS
Complete KYC ensures smooth transactions. Serious players using Reddy Anna Pro services must keep documents updated to avoid compliance issues.
Reporting Betting Income in ITR
TDS deduction does not remove your responsibility to file an Income Tax Return.
You must:
Declare total betting income
Report TDS deducted
Show income under “Income from Other Sources.”
Claim a refund if excess tax was deducted
Check Form 26AS to confirm that TDS is correctly reflected before filing your return.
Can Betting Losses Be Adjusted?
Indian tax law does not allow adjustment of betting losses.
Important rules:
Losses cannot be set off against salary
Losses cannot reduce business income
Losses cannot be carried forward
Only net positive winnings are taxable
This makes record-keeping very important.
Treatment of Bonuses and Promotional Offers
Bonuses are common in online betting. However, tax applies differently.
Key points:
Bonus credit itself is not taxed
Tax applies when bonus winnings become withdrawable
Converted cash winnings attract TDS
Players should read promotional terms carefully before relying on bonus funds.
Common Mistakes to Avoid
Many players make avoidable errors.
Avoid these mistakes:
Ignoring TDS deduction details
Failing to report income in the ITR
Using incorrect PAN information
Assuming small winnings are tax-free
Withdrawing funds without checking the net profit position
Being informed prevents legal complications.
Practical Tax Planning Tips
Follow these simple steps for smooth compliance:
Maintain deposit and withdrawal records
Track yearly net winnings
Keep PAN and KYC updated
Download transaction statements regularly
File ITR before the due date
Consult a tax advisor if the winnings are high
Small discipline ensures long-term safety.
Why Tax Awareness Matters
Online betting platforms operate in a more regulated environment in 2026. Financial tracking is transparent. Authorities can access transaction data. Non-compliance can lead to:
Income tax notices
Penalties and interest
Financial scrutiny
Legal complications
Understanding TDS helps you plan withdrawals better. It also builds financial confidence.
Conclusion
TDS on betting winnings in 2026 is clear and mandatory. A flat 30 percent tax applies on net winnings. No deductions or loss adjustments are allowed. PAN and proper reporting are essential.
If you use Reddybook, responsible betting must include responsible tax compliance. Track your transactions. Understand your net profit. File your income tax return correctly and on time.
