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ITA 1961 → ITA 2025Special Tax Rates

Section 115BB Section 128

Tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting

RetainedMedium - Standard penal tax rate for windfalls.

Quick Answer

Section 115BB of the Income Tax Act, 1961 (Tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting) corresponds to Section 128 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.

What changed for Section 115BB

Section 115BB of the 1961 Act sets out the rules on tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting. Taxes casual income (lotteries, gambling) at a flat 30% rate without any basic exemption limit or deductions.

Under the Income-tax Act, 2025 (effective 1st April 2026), Section 115BB is retained and renumbered as Section 128 of the Income-tax Act, 2025. Retained. Explicitly separated from 'Online Games' (which are now under 115BBJ) to maintain clarity between physical and digital gambling.

The transition impact on Section 115BB is assessed as Medium. Standard penal tax rate for windfalls.

Old Law (ITA 1961)Ch: XII

Sec 115BB

Provision Summary

Taxes casual income (lotteries, gambling) at a flat 30% rate without any basic exemption limit or deductions.

New Law (ITA 2025)Ch: XI

Sec 128

Provision Summary

Retained. Explicitly separated from 'Online Games' (which are now under 115BBJ) to maintain clarity between physical and digital gambling.

Key Changes & Highlights

  • Online gaming removed from this section's ambit.

Related Sections

Frequently Asked Questions

Which subject does Section 115BB of the 1961 Act cover?

Section 115BB of the Income Tax Act, 1961 covers tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting. Taxes casual income (lotteries, gambling) at a flat 30% rate without any basic exemption limit or deductions.

What is the new section number for Section 115BB under the Income-tax Act, 2025?

Section 115BB of the Income Tax Act, 1961 maps to Section 128 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Explicitly separated from 'Online Games' (which are now under 115BBJ) to maintain clarity between physical and digital gambling.

How does the Income-tax Act, 2025 affect Section 115BB in practice?

The transition impact for Section 115BB is rated Medium. Standard penal tax rate for windfalls.

What is new about Section 115BB under the Income-tax Act, 2025?

Online gaming removed from this section's ambit. These points are specific to Section 115BB (Tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting).

Disclaimer: This mapping of Section 115BB (Tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting) to Section 128 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 115BB is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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