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Set off of gambling loss

Nelli.pradeep kumar reddy (CA)     21 June 2017

Nelli.pradeep kumar reddy
 1 likes  118 points

| My Other Post

Dear all

As per the provisions of income tax ,No loss can be set off against income from winnings from lotteries, crossword puzzles, race including horse race, card game, and any other game of any sort or from gambling or betting of any form or nature.

Now the case is One my friend plyaed game in ( I think it falls under gambling). he played for an amount of Rs.5,00,000 and he lost Rs.2,80,000 ( In different games over the year ) . But  Among some winnings they deducted TDS about Rs 60,000.

As per the provision loss can not be set off against income of gambling.

Now my Query is 

1.Does game played in Ace2three falls under gambling

2. Is there any possibility of claiming this refund ?

3. Is there any case  law in favour of Assessee stating that gambling income can be set off against gambling income of same year ( Not for carry forward ).

Kindly provide with a solution if u have any idea about it.


Thanks in advance




Sumeet (CA)     21 June 2017

 29 likes  527 points

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1. Yes the games played under Ace2three falls under gambling as per income tax laws. They also deduct TDS from the winnings under section 194B which is specifically for Deduction of Tax on winning from lottery and games of similar nature.

2. No, you cannot claim refund for this TDS deducted because no deduction u/s sec 80C or 80D or any other deduction/allowance is allowed from such income. The Benefit of basic exemption limit and income tax slab rate is also not applicable to this income, also you cannot adjust any loss against this income. The entire amount received will be taxable at the flat rate of 30.9%.The only way you can get any refund out of above is if your client has no other income except the above income during the year and total winning does not exceeds 5,00,000. In that case you can claim rebate under section 87A (which is 5000 for FY 2016-17) as refund.

3. No Loss (including Gambling loss for the same year) can be adjusted against winnings from lottery and similar games. You cannot even deduct any expenses against such income.


Hope this helps

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