TDS will not be deducted on winning amount up to Rs 100 in online gaming, know what are the new tax rules

TDS On Online Gaming Platforms: The income from online gaming platforms has now come under the radar of the Income Tax Department, which is going to be implemented from July 1, 2023. CBDT (Central Board of Direct Taxes) has issued guidelines in this regard, in which TDS (Tax Deducted at Source) will have to be paid on earnings of Rs 100 or more through online gaming. If there is income from bonus, referral bonus or any kind of incentive in online gaming, then it will also be counted on the taxable amount on which TDS will have to be paid.

what are the guidelines

According to the CBDT guidelines, if a player wins less than Rs 100 in online gaming, then the online gaming platform will not need to deduct TDS. According to this circular, if bonus, referral bonus, incentive is given by the online gaming company, then according to the income tax law, it will also be added to the taxable income deposit. Some deposits may be in the form of coins, coupons, vouchers and counters, they will be treated as taxable deposits.

In the circular, CBDT has said that online gaming companies who have not deposited tax for the month of April can deposit it with the tax amount of May till June 7. After making the deposit after this date, the penalty will have to be paid. Also, the income from this will have to be declared in the income tax declaration for 2023-24.

CBDT has said in its Rule 133 that no matter what name a user account is registered with an online gaming company, if any taxable deposit, non-taxable deposit, if the winning amount is credited or withdrawal is debited The rules will apply to him. If a user has multiple accounts then each of his accounts will be calculated for winning the net amount. Deposits, withdrawals or balance in the user account will all come under this purview.

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