Online betting in India is growing rapidly. Reddy Book Cricket leagues, football matches, and casino games attract thousands of players daily. With increasing winnings comes tax responsibility. In 2026, TDS rules on betting income are strict and clearly defined. Every Indian player must understand them.
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 bank account. You receive the balance amount after deduction.
As per 2026 tax rules, a flat 30 per cent tax applies to net winnings from online betting and gaming. This rule applies to platforms like Reddybook and other regulated betting websites.
Tax Rate Structure in 2026
The tax structure for betting income is straightforward.
Key points include:
Flat 30 per cent tax on net winnings
No benefit of the basic exemption limit
No deduction of expenses
No adjustment of betting losses
A PAN card is mandatory
Even small profits are taxed at the same fixed rate.
How Net Winnings Are Calculated
Many players misunderstand how taxable winnings are calculated. Tax does not apply to total withdrawals. It applies to net winnings.
Net Winnings Formula:
Total Withdrawals – Total Deposits = Net Winnings
Example:
Total deposit: Rs 50,000
Total withdrawal: Rs 85,000
Net winnings: Rs 35,000
TDS at 30 percent: Rs 10,500
You receive Rs 74,500 after deduction.
Always review your transaction history through Reddy Book Login to track deposits and withdrawals accurately.
When Is TDS Deducted?
TDS can be deducted at different stages.
Common situations include:
At the time of withdrawal
At the end of the financial year
When the account shows overall profit
Active members of the Reddy book club should monitor their yearly performance to avoid confusion during withdrawals.
Importance of PAN and KYC
PAN verification is compulsory for online betting platforms. Without valid PAN details:
Higher TDS may be deducted
Withdrawal requests can be delayed
TDS credit may not reflect in Form 26AS
Complete KYC verification ensures smooth processing. Serious players using Reddy Book Pro features must keep documents updated at all times.
Reporting Betting Income in Income Tax Return
TDS deduction does not remove your responsibility to file an Income Tax Return.
You must:
Declare total betting income
Report TDS deducted
Mention income under “Income from Other Sources”
Claim a refund if excess tax was deducted
Check Form 26AS to confirm that the deducted tax is properly reflected before filing your return.
Can Betting Losses Be Adjusted?
Indian tax laws are strict in this area. Betting losses cannot be adjusted against other income.
Important rules:
Losses cannot reduce salary income
Losses cannot reduce business income
Losses cannot be carried forward
Only net positive winnings are taxable
This makes proper financial planning very important.
Bonus and Promotional Credits
Online platforms often offer welcome bonuses and cashback. Tax rules apply carefully in such cases.
Key considerations:
Bonus credit itself is not taxed
Tax applies when bonus winnings become withdrawable
Converted cash winnings attract TDS
Players using the Reddy Book APP should carefully review bonus terms to understand the taxable impact.
Common Mistakes to Avoid
Many players face issues due to a lack of awareness.
Avoid these mistakes:
Ignoring TDS deduction details
Not reporting income in the ITR
Using incorrect PAN details
Assuming small winnings are tax-free
Withdrawing funds without checking the net profit
Being informed prevents legal complications.
Practical Tax Planning Tips
Follow these steps to stay compliant:
Maintain clear deposit records
Track withdrawals regularly
Keep PAN and KYC updated
Download account statements
File income tax return before the due date
Consult a tax advisor if winnings are high
Simple discipline protects long-term earnings.
Why Understanding TDS Matters in 2026
The online betting ecosystem is becoming more regulated. Digital transactions are traceable. Tax authorities can monitor financial activity more efficiently. Non-compliance may lead to:
Income tax notices
Interest and penalties
Increased scrutiny
Legal trouble
Understanding TDS helps you plan withdrawals better and maintain financial stability.
Conclusion
TDS on betting winnings in 2026 is mandatory and non-negotiable. A flat 30 per cent tax applies to net winnings. No deductions or loss adjustments are allowed. Proper PAN verification and income reporting are essential.
If you use Reddy Book, responsible betting must include responsible tax compliance. Track your transactions carefully. Understand how net winnings are calculated. File your tax return correctly and on time.
