Reddy Book Understanding TDS on Betting Winnings Guide in 2026

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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.