The online games market is growing rapidly in the country. The craze of playing online games and winning money has increased among the youth also. But have you ever wondered how much tax the users who win money online pay to the government? Today we will tell you how much tax is levied on the money won by users in online gaming.
online games
The online games market is growing rapidly in India. Not only this, according to many media reports, people are also winning lakhs and crores of rupees through online games. But have you ever wondered how much tax is deducted on winning money online? Because the income from online gaming platforms remains on the radar of the Income Tax Department.
what does the rule say
Let us tell you that out of the money that users win in online games, TDS has to be paid on the 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 and TDS will have to be paid. In such a situation, if you have won Rs 200 by investing Rs 150, then you will not have to pay any tax. But if you win Rs 250 by investing Rs 150, then you will have to pay 28 percent of the winning amount.
According to CBDT guidelines, if a player wins less than Rs 100 in online gaming, then the online gaming platform will not be required to deduct TDS. But according to this circular, if bonus, referral bonus, incentive is given from an online gaming company, then as per the Income Tax law, it will also be added to the taxable income deposit. Whereas some deposits may be in the form of coins, coupons, vouchers and counters, they will be treated as taxable deposits.
Also read:How strong is a hair on a human head, how much weight can it lift?
Strict rules regarding online gaming
CBDT in its Rule 133 has said that irrespective of the name in which the user account is registered with the online gaming company, if there is a taxable deposit, non-taxable deposit, if the winning amount is credited or the withdrawal is debited. Yes, the rules will apply to that. Whereas if a user has multiple accounts, then each account will be calculated for the net amount won. Apart from this, the deposit, withdrawal or balance present in the user account will all come under this scope.
Also read:People will stop marrying after so many years, big revelation in the report
