The Statutory Brief

IT Act 1961 → 2025 / Section 115BB

Tax rates & regime

Section 115BB → Section 194

Tax on winnings from lottery, crossword, races, card games and betting — 30%

Section 115BB of the old Income-tax Act, 1961 · new section 194 under the Income-tax Act, 2025

New reference Section 194 (Table S.No. 1)

Income-tax Act, 1961Section 115BB

  • Flat 30% on winnings from lottery, crossword, races, card games, gambling, betting
  • No basic exemption limit set-off; no deduction of expenses
  • Online games moved to 115BBJ from 1 April 2023
  • TDS under 194B/194BB

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 194 (Table S.No. 1)

  • Section 194 Table S.No. 1: winnings (other than online games) taxed at 30%
  • Online games: S.No. 5, 30% on net winnings
  • Same table also holds patents 10%, carbon credits 10%, VDA 30%, life insurance 12.5%
  • TDS: section 393(3) table

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Rate unchanged at 30%; the section is now one row of the special-rate table in section 194.

Practice notes

  • Surcharge and cess apply on top of 30%.
  • Income from owning and maintaining race horses is not 'winnings'.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is the tax on lottery winnings under the new Income Tax Act 2025?

30% under section 194 (Table S.No. 1), plus surcharge and cess, with no deduction for expenses.

What is section 115BB called in the new Act?

Section 194, Table serial number 1, of the Income-tax Act, 2025.

What changed in section 115BB under the new Income Tax Act?

Rate unchanged at 30%; the section is now one row of the special-rate table in section 194.

Is section 115BB still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 115BB of the 1961 Act. Section 194 of the 2025 Act applies from tax year 2026-27.

Related sections

194B→393(3)TDS on lottery, crossword, card game and gambling winnings115BBH→19430% tax on income from crypto / virtual digital assets111–115UB→191–224Lottery 30%, patent 10%, carbon credits 10%, life insurance 12.5% (section 194 table); MAT/AMT credit; securitisation trusts, VC, business trusts, investment funds