As of 2026, all net winnings derived from Andar Bahar on online gaming platforms are subject to a flat 30% Tax Deducted at Source (TDS) under Section 194BA of the Income Tax Act. This tax is applicable to the "net winnings" component, calculated either at the time of withdrawal or at the end of the financial year, with no minimum threshold or de minimis limit (previously ?10,000). Furthermore, a mandatory 28% Goods and Services Tax (GST) is levied on the initial deposit amount at the entry level, ensuring that the fiscal framework captures both the stake and the profit of the gaming activity.
The Legal Framework: Section 194BA and Section 115BBJ
The taxation of online games like Andar Bahar—a popular Indian card game involving a 52-card deck and a "Joker" or "Middle" card—is governed by specific provisions introduced to differentiate online gaming from traditional betting and gambling. By 2026, these regulations have matured into a streamlined process managed by the Central Board of Direct Taxes (CBDT).
Section 194BA specifically mandates that any person responsible for paying income by way of winnings from any online game must deduct TDS at the rate of 30%. This is paired with Section 115BBJ, which sets the tax liability for the taxpayer. Unlike previous years where a ?10,000 threshold existed per transaction, the current law requires deduction on even the smallest amount of net profit. For Andar Bahar players, this means that every successful round where the card lands on the chosen side (Andar/Inside or Bahar/Outside) contributes to a cumulative net winning figure that is taxable.
Calculating Net Winnings for Andar Bahar
The calculation of "Net Winnings" is the most critical aspect of the 2026 tax rules. The CBDT provides a standardized formula to ensure consistency across all online gaming intermediaries. The formula is generally structured as follows:
- Net Winnings (W) = (A + V) - (B + C)
- A: Total amount withdrawn from the user account during the financial year.
- V: Closing balance in the user account at the end of the financial year.
- B: Total amount deposited in the user account during the financial year.
- C: Opening balance in the user account at the beginning of the financial year.
In the context of Andar Bahar, if a player starts with an opening balance of ?1,000, deposits an additional ?5,000, and ends the year with a balance of ?12,000 after several rounds of play, the net winnings would be ?6,000. The platform is legally obligated to deduct 30% of this ?6,000 (?1,800) as TDS before the final withdrawal or at the close of the fiscal year on March 31st.
2026 Comparative Tax Structure for Online Gaming
The following table illustrates the fiscal obligations for a player engaging in Andar Bahar compared to the previous tax regimes. This highlights the shift toward "Net Winnings" rather than per-transaction taxation.
| Feature | Pre-2023 Regime | 2026 Current Regime |
|---|---|---|
| TDS Rate | 30% | 30% + Applicable Surcharge/Cess |
| TDS Threshold | ?10,000 per winning | Nil (Tax on ?1 and above) |
| Calculation Basis | Gross winnings per round | Net winnings (Profit-based) |
| GST Rate | 18% on GGR (Platform Fee) | 28% on Initial Deposit (Face Value) |
| Deduction Timing | At time of payment | Withdrawal or Year-end |
The 28% GST Impact on Entry Stakes
While TDS applies to winnings, players must also account for the 28% GST applied at the point of deposit. Under the 2026 rules, when a player deposits ?1,000 into an online casino or gaming app to play Andar Bahar, the GST is calculated on the face value of the deposit. This means the actual playable balance may be lower than the deposited amount, or the platform may absorb the GST as a promotional cost, though the tax must still be paid to the government.
This "double-taxation" effect (GST on entry and TDS on exit) significantly impacts the Return to Player (RTP) in Andar Bahar. Given that the house edge for Andar (approx. 2.15%) and Bahar (approx. 3.0%) is already a factor, the additional 30% tax on profits necessitates a more disciplined bankroll management strategy for high-volume players.
Compliance and Reporting Obligations
For the player, the primary responsibility is to ensure that the online gaming platform is a "Registered Online Gaming Intermediary." These platforms are required to issue Form 16A on a quarterly basis, which reflects the TDS deducted. In 2026, this data is automatically synced with the taxpayer's Annual Information Statement (AIS) and Form 26AS.
It is important to note that losses in Andar Bahar cannot be offset against income from other sources (like salary or business profit). However, losses within the same financial year and within the same "Net Winnings" calculation are effectively offset because the tax is only on the final profit. Losses cannot be carried forward to the next financial year (2027-28).
Andar Bahar Variations and Tax Consistency
Whether the game is played as a "Live Dealer" version, an RNG-based (Random Number Generator) digital version, or variations like "Speed Andar Bahar," the tax rules remain identical. The tax law is "game-agnostic," meaning it applies to the financial outcome of the activity rather than the specific mechanics or side-bets (such as predicting the number of cards dealt before a match, which often offers higher payouts like 120:1).
Frequently Asked Questions
Is there any way to avoid TDS on Andar Bahar winnings in 2026?
No, there is no legal way to avoid TDS. All licensed online gaming platforms are mandated to deduct 30% TDS on net winnings under Section 194BA. Attempting to use unlicensed offshore platforms carries significant financial and legal risks under the Foreign Exchange Management Act (FEMA).
Can I claim a refund of the TDS deducted from my winnings?
You can only claim a refund if your total annual income, including the net winnings, falls below the basic exemption limit and you file an Income Tax Return (ITR). However, since Section 115BBJ is a flat tax rate, the ability to reduce this liability through standard deductions (like 80C) is generally restricted.
What happens if I don't withdraw my winnings in 2026?
If you leave your winnings in the gaming wallet, the platform is still required to calculate the TDS on the net winnings as of March 31, 2026. The tax will be deducted from your balance and remitted to the government, even if no withdrawal request was initiated.
Does the 30% TDS apply to the bonus money or referral credits?
Yes, in 2026, any bonus, referral credit, or incentive that is converted into "withdrawable winnings" is included in the net winnings calculation. Once these credits are used to play and result in a win, they lose their "incentive" status and become taxable income.