Winning from online gaming a.y 2022-23

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.