Asia
Online gaming winnings taxed in India
According to a recent announcement by the Indian government, bonuses, referrals, and incentives provided by online gaming companies will now be subjected to taxation. The government considers these elements to be a part of a player’s overall winnings, as reported by Reuters.
The Central Board of Direct Taxes has issued new guidelines stating that online gaming companies must deduct taxes at the source if players claim net winnings, including any received bonuses or incentives. However, bonuses and incentives will not be taxed if they remain unclaimed or are not withdrawn.
According to the new regulations, net winnings will be calculated by subtracting the amount withdrawn by a player from the total sum of deposits made to their gaming account, along with the opening balance at the beginning of the year. Players’ net winnings on online gaming platforms will be subjected to a 30 percent tax rate.
Companies will not be required to carry out tax deductions if the amount withdrawn is less than 100 rupees (US$1.22) per month.
Additionally, the Goods and Services Tax (GST) Council is expected to provide clarity on tax rates for online gaming in an upcoming meeting scheduled for next month. A finance ministry official mentioned that the council meeting is likely to be held in June after the state elections are concluded.
During the meeting, the council will address the report of the Group of Ministers (GoM) on online gaming, horse racing, and casinos. The report was not discussed at the 49th council meeting in February due to the absence of chairman Conrad Sangma, who was occupied with the elections in Meghalaya.