Poker winnings - losses set off in same year

TDS / TCS 2586 views 6 replies

Hi, 

I made 30,000 playing online poker and paid 30% (10,000) TDS on it.

I also paid 20,000 TDS for my salary income. 

In the same financial year, I lost 10 lacs playing poker after that. 

Can I claim this 20000+10000 TDS refund? As i am in net loss of almost 2 lacs (including salary too)

Replies (6)
Yes you can claim TDS and carry foward the loss of poker loss for next 4 years being speculation loss

You can claim set off loss and and carry forward balance losss for future assessment year to be set off from poker profit, File ITR on or before due date and show this in ITR

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 amounting to Rs. 10 lakhs 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 and claim of refund will not arise in the above case. 
Please correct me if the above interpretation has an alternative view. 

Losses cannot be set off against casual income i.e. crossword puzzles, winning from lotteries, races, card games, betting etc.
Special notes related to income under Section 115BB No benefit of basic exemption limit is available. In other words, if you have a single income in a year from winning of puzzle amounting to Rs 20,000 then the tax liability (before rebate under section 87A) shall be Rs 6,000. No deduction under Chapter VI-A (Section 80C to Section 80U) shall be allowed from such income. No deduction in respect of any expenditure or allowances in connection with such income shall be allowed under any provision of this act in computing such income as per Section 58(4). Tax deposited in respect of such income shall not be refundable expect the amount of rebate under section 87A which is claimed by the winner Surcharge and education cess shall be paid by the winner at the time of filing his income tax return. Such income shall be chargeable to tax as Income from Other Source as per Section 56(2)(ib)

Thanks for sharing. I made over 50 000 and paid 15% TDS on casino I am playing for quite a long time. Also, I got a refund for those. Maybe my case is unique and I am not sure you'll have same luck as me. What I can suggest you is to check all information before making a bet or using a specific website. In my case it helped me to describe my situation at support center with as much details as possible and they helped me to solve my problem. I would suggest you as well for future not to pay taxes by using cryptocurrency that would save a dozen of money. I would pay even less if you would use crypto exchangers with some deductions.Hope that was helpful for you.


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