TDS on Horse Race Winnings: New Rules From April 2025

Chaitra Seetharam | Last updated: 04 March 2026

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From April 1, 2025, new rules for Tax Deducted at Source (TDS) on horse race winnings will come into effect under Section 194BB of the Income Tax Act. The key change is the removal of the aggregate threshold, meaning TDS will now be deducted on individual transactions exceeding £10,000, rather than cumulative winnings. The TDS rate remains at 30%, and bookmakers or licensed entities are responsible for withholding the tax.

As per section 194BB of the Income Tax Act of 1961, Winnings from horse race― Any person, being a bookmaker or a person to whom a license has been granted by the Government under any law for the time being in force for horse racing in any race course or for arranging for wagering or betting

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About the Author

Chaitra Seetharam

Finance Professional

I write on Income Tax, TDS, ITR filing, banking rules, investment schemes, and financial law updates in India. My articles simplify complex tax provisions, compliance requirements, and policy changes to help taxpayers, professionals, senior citizens, and businesses stay informed and financially aware.

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TDS on Horse Race Winnings: New Rules From April 2025

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