The Centre today officially notified the regulatory framework for its new online gaming rules, which will effectively ban real money games in the country, while enhancing support for e-sports and social gaming online, as per a PTI report.
The Promotion and Regulation of Online Gaming (PROG) Act, 2025 enacted by Parliament in August 2025 is set to come into effect next week, on 1 May 2026.
- Every e-sport and online social game provider must have a grievance redressal mechanism to ensure “fair play”.
- If unsatisfied by the redressal, you can appeal to the Online Gaming Authority of India within 30 days, which will endeavour to clear the matter in a 30-day timeline.
- The final level of appeal lies with the appellate authority (here IT Secretary) who will aim to dispose of the matter within 30 days.
- “For players, teams, tournament operators, broadcasters, sponsors, and other ecosystem participants, this creates a clear signal: once registered, an esport is unequivocally recognized as a legitimate sporting discipline,” according to Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming.
Do you have to pay taxes for money won from gaming?
Any income generated through online gaming is treated as ‘Income from Other Sources’ when filing income tax returns. Sections 115BBJ and 194BA of the Income-tax Act apply to income earned on different gaming platforms.
- Under Section 115BBJ, income tax on net winnings for the previous fiscal year is levied at 30 per cent.
- Section 194BA, on the other hand, deals with tax deducted at source (TDS) on net gains credited to the taxpayer’s gaming account at the end of the financial year.
(With inputs from Agencies)
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Taxpayers are advised to consult a qualified tax professional or refer to the official website of the Income Tax Department for accurate and up-to-date guidance before filing their returns.
