Adjustment of Loss made in Poker game

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This discussion clarifies that losses incurred in poker games cannot be adjusted against salary or other income sources. Furthermore, these losses cannot be carried forward to future tax years. Poker winnings are classified as casual income, taxed at 30% under 'Income from Other Sources', and specific provisions for set-off or carry-forward of such losses are not provided, with Section 58(4) explicitly disallowing deductions.

DIVYESH JAIN

DIVYESH JAIN (Querist)
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14 December 2021 Dear Sir,

I want to know if someone has made losses in a poker game then can this losses be adjusted against salary or any other income.

Further can this loss be carry forward for future years and get adjusted against profits earned from poker game.

Please help me in this matter.

Regards,
Divyesh Jain

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 December 2021 This losses can't be adjusted against salary or any other income.
Carry forward of such losses not allowed.

1. According to sec 115BB, winning from poker is in the nature of casual income and thus it will be taxed under the head "Income from Other sources" @ 30%. 2. Set off and carry forward of losses have not specifically provided any exclusive provision for carry forward of loss from casual income (income specified u/s 115BB) 3. And to add to the above point, sec 58(4) has clearly mentioned that no deductions will be allowed while computing income under this source. 4. Hence, loss from poker game cannot be set off against income from a poker game and also with salary income. Salary income will be taxed as such and income from poker will be taxed under the head IOS.

DIVYESH JAIN

DIVYESH JAIN (Querist)
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14 December 2021 Ok Sir. Thanks for your detailed reply

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