According to guidelines issued by the Central Board of Direct Taxes, online gaming companies will now have the responsibility of deducting taxes at the source if players claim their net winnings, including bonuses and incentives. However, the agency clarified that bonuses and incentives will not be taxed if they are not claimed or withdrawn.
To calculate net winnings, the amount withdrawn by a customer from their account will be subtracted from the sum total of deposits and opening balance at the beginning of the year.
Currently, the net winnings of a player on online gaming platforms are subjected to a 30 percent tax rate. However, if the amount withdrawn by a player is less than Rs. 100 ($1.22) per month, online gaming companies will not be required to deduct taxes on those winnings.
In December 2022, it was reported that a panel of state finance ministers had not yet submitted their report on the taxation of the booming online gaming sector. This report is crucial in determining how the levies should be imposed. The panel has been deliberating on whether to impose federal tax solely on the profits of firms or on the value of the entire pool of money collected from participants. Officials stated that reaching a consensus in December was unlikely.
Real-money online games have gained immense popularity in the country, attracting foreign investors such as Tiger Global and Sequoia Capital, who have supported local gaming startups like Dream11 and Mobile Premier League, known for their fantasy cricket games.
In other news, the Samsung Galaxy A34 5G was recently launched in India, alongside the more expensive Galaxy A54 5G smartphone. Users are curious to know how this phone compares to the Nothing Phone 1 and the iQoo Neo 7. We delve into this topic and more on Orbital, the Gadgets 360 podcast. You can listen to Orbital on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music, and wherever you prefer to get your podcasts.
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Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
