Esports Prize Money in India: How Payouts and TDS Work

Winning a tournament is great. Being surprised by a smaller-than-expected payout isn't. Here's the general picture of how esports winnings are handled in India. This is general information, not tax advice — speak to a tax professional for your situation.

Why TDS gets deducted

Indian income tax law treats winnings from online games as taxable income, and platforms are required to deduct tax at source (TDS) from net winnings before paying out — this falls under Section 194BA of the Income Tax Act. Winnings from other games and competitions can fall under different sections and thresholds.

What you'll usually need for payout

• A verified account in your own name.
• Your PAN — it's needed to deduct and report TDS correctly.
• A bank account or UPI ID to receive the money.

For players under 18, HangOn handles financial details through a guardian — see the child safety policy.

Keep records

Save your payout confirmations. TDS deducted on your PAN shows up in your tax records, and you may need to report winnings when you file your return.

Team prizes

Agree up front how the team splits prize money. It avoids the most common argument in amateur esports.