Tax · 5 min read
Esports Prize Money Paid in USDT? How to Convert It to INR and Pay Tax
Won an esports tournament paid in USDT? How to receive it on TRC20, convert it to INR in your bank, split a team prize, and how prize money is taxed in India.
By Bryan Aaron · Updated
Quick answer
Ask the organiser to pay USDT on the TRON (TRC20) network to a wallet you control, sell it on a direct offramp like Disburz for INR paid to your own bank account, and keep the payout records. Prize money from games is generally taxed as winnings at a flat 30% plus cess.
More online tournaments, scrims and community leagues now pay prize money in USDT, usually on the TRON (TRC20) network, because it reaches players in any country in minutes. If you're an Indian player, streamer or team owner paid in USDT, here's how to get it into your bank account and what tax applies.
Step 1: Give the organiser the right address
- Most organisers pay USDT on TRC20. Confirm the network before you share an address.
- Use a wallet you control (such as Trust Wallet) or an exchange deposit address for USDT on TRC20. A TRON address starts with
T. - For team prizes, agree in writing who receives the payout and how it's split.
Step 2: Convert the prize to INR
Sell the USDT on Disburz: you see the exact INR before you send, with no documents to upload, and the rupees are paid into your own bank account by IMPS, NEFT or RTGS, with a bank UTR. Today it costs ₹50 fee + 3 USDT network deduction. Live example:
| Arrives at Disburz | 500 USDT (TRC20) |
| Network deduction | − 3 USDT |
| Rate | 1 USDT = ₹96.00 |
| Converted value | ₹47,712.00 |
| Fee | − ₹50.00 |
| Paid to your bank | ₹47,662.00 |
|---|
Step by step with screenshots: Trust Wallet to bank account.
Splitting a team prize
Either the captain sells the whole prize and pays teammates in INR from their own bank account, or the organiser sends each player their share in USDT. Separate payouts keep everyone's tax records clean; if one person receives it all, keep a written record of the split and each transfer.
Tax on esports prize money
- Prize money from games and competitions is generally taxed in India as winnings at a flat 30% plus cess, with no basic exemption limit (historically section 115BB).
- Professional players and streamers earning regularly may instead report it as professional income; ask a CA which applies to you.
- If the USDT's value changes between receiving and selling, that difference is a gain on a virtual digital asset, also taxed at 30%. Selling soon after receiving keeps it small.
Keep the tournament announcement, the payout transaction hash and your INR UTR. Esports is recognised as a sport under the Online Gaming Act, 2025, so prize money from esports competitions is a normal, reportable income.
