TDS on Winnings from online games — Section 194BA (now 393(3))
Rate
| Type of payment | Rate (with PAN) | Notes |
|---|---|---|
| any | 30% | — |
No valid PAN: 30% or the normal rate, whichever is higher (Section 397(2), old 206AA).
Threshold
TDS applies when: Any amount. Once a threshold is crossed, TDS applies on the full amount, not just the excess.
Worked example
Paying ₹1,00,000 (plus GST) to winnings from online games on 10 June 2026:
Exemptions & relief
- No special exemptions beyond the threshold.
If you get it wrong
Late deduction: 1% per month or part thereof, from date deductible to date deducted.
Late deposit: 1.5% per month or part thereof, from date deducted to date deposited.
Late return: Rs 200/day (234E equivalent), capped at TDS amount in the statement.
Non-deduction: 30% of expenditure disallowed for non-deduction/non-deposit (40(a)(ia) equivalent); wrong payment code can trigger the same — verify scope under 2025 Act.
FAQs
What is the new section number for 194BA from FY 2026-27?
Under the Income Tax Act 2025, 194BA now falls under Section 393(3). The payment/return code is 1060 or 1061.
What is the TDS rate under section 194BA?
30%. If the payee has no valid PAN, 30% applies (or the normal rate, whichever is higher).
What is the threshold for 194BA?
Any amount.
Which TDS return is 194BA reported in?
Form 140 (was 26Q), filed quarterly.
Written and reviewed by a CA firm. Verified 2026-06-08 against the Income Tax Act 2025 / Finance Act 2025. General information, not advice for your specific case.