Section 194B of Income Tax Act, 1961 states that winnings from lotteries, game shows, card games, online games, crossword puzzles, quiz shows, and dance competitions will attract a TDS (full form: Tax Deducted at Source) of 30%, provided the earnings exceed Rs. 10,000.

The income tax deducted on lottery winnings cannot be claimed as a refund as it is the straight income tax deducted from the winnings of the assessee

The person paying the prize money, which is usually the organiser of the lottery, crossword puzzle, game shows, dance competitions, etc., is liable to deduct TDS under Section 194B

 Usually, taxpayers can claim a refund if the TDS deduction is more than their tax liability in an assessment year. That said, for lottery winnings, you cannot claim any refund. 

Expenses like coaching ,subscriptions,travel, meals, and lodging can be cut from their total income.

You can file your tax returns and take deductions appplicable to you and claim refund if required 

Dear Client, 

In order to pay taxes on winnings from online gaming, individuals who get income from such winnings are required to have TDS deducted from their net profits, as per Section 194BA of the Income Tax Act, 1961. After any entry fees are deducted, Section 194BA requires that TDS be deducted from each and every rupee won; these amounts are known as net wins. The Rs 10,000/-threshold will therefore not apply while deducting TDS. If there is any outstanding money in the user account that has not yet been withdrawn, TDS must be applied to net wins in compliance with the regulations at the conclusion of the fiscal year. TDS has to be taken out of the amount withdrawn when a user withdraws net winnings from their user account. But the total amount withdrawn during the fiscal year will have such TDS subtracted. If the TDS collected is more than what you owe to the government, you can get a TDS Refund. A taxpayer is obliged to file Income Tax Returns according to their slab. Taxpayers who fall inside the 5% tax bracket, for example, are eligible to receive a refund of TDS for any excess amount paid as TDS on investments or fixed deposit interest.  

Hope this answer proves beneficial to you. 

- Online game like Poker comes under the “Income from other sources” category and is taxable under sections 115BBJ and 194BA, and the winners has to pay a flat tax of 30% on this income, regardless of how much they earn, and the said amount is non-refundable. 

- However, the expenses like coaching ,subscriptions travel, etc. can be cut from their total income, and can claim a refund after filing ITR under the same assessment period.