Winning from online gaming a.y 2022-23

Specifically , from April 1, 2023, platforms gotta deduct TDS on "net winnings" as per Rule 133 of the Income - tax Rule, 1962. Net winnings here mean withdrawals plus closing balance minus opening balance and non-taxable deposits. 

And there is a case mentioned for FY 21-22 where an assessee deposited Rs.1.5 cr in a rummy circle account. After a search on gameskraat, the assessee's case was opened, and the whole amount was added. Relevant income tax acts were considered for taxable value from winnings. Plus, amended section 115BBJ applies from April'24. 

Given your facts:

• Your deposits (₹1.5 cr) exceed withdrawal (₹1.4 cr). That means you effectively did not “win” more than your deposits (on gross basis).

• Under the old regime, AO will tax your winnings as the entire gain (they may treat the whole withdrawal or the gross winning shown in your platform account).

• You must show your deposit statements, platform account-wise deposit history, proof that money came from your bank, and that you did not earn more than deposit.

In appeal, you can press:

1. AO should segregate the amount deposit vs bonus vs winnings — request him to examine platform ledger to show how much was actual winning vs deposit.

2. Challenge if AO does not prove your deposit was “income / winning”.

3. Show that applying 115BB strictly on “gross winnings” is harsh, and reliance on post-2023 Rule 133 is a more rational method (even though not law then). Sometimes courts allow relief based on “same method” concept, but success is uncertain.

But keep in mind: AO’s approach is consistent with the law as it stood then, and courts have upheld such gross additions.