Online Games | Online gaming will be taxed from this date, IT department issued ‘this’ notification

File Photo Mumbai: The business of online gaming is growing rapidly not only in the country but all over the world. Companies were already making huge profits but now the users playing games are also earning huge profits from it. If you are also a strong player of online games and earn big money, then be ready to pay tax now. Because income tax is keeping an eye on the income from online games and a notification has also been issued in this regard. Tax will be applicable from this date The government has amended the rules of tax on earnings from online games. Under this, the government has amended the Income Tax Rules, 1962. The new rule will come into force from 1 July 2023. Simply put, from July 1, income from online games will be taxed. Online gaming is a fast-growing industry, which is expected to grow at a CAGR of around 27% over the next five years in India. Full information will have to be given in the declaration According to the new income tax rules, all details like number of transactions, taxable income, deposits by gaming company in all user accounts during the whole year will have to be given in the declaration for 2023-24. Earlier the Finance Act 2023 added a new section 194BA to the Income Tax Act, 1961, which asked online gaming platforms to deduct TDS on the net winnings credited to the account of the person concerned. Further, the CBDT further clarified that GST shall not be taken into account for the purpose of calculation of winnings for TDS under section 194BA of the Income Tax Act. Also read These users will not be taxed However, there is a relief for the users as well. Under this, the money given by the company for referral, promotion or any other item will remain out of the tax net until it is used in the game and not withdrawn. For this, the complete details of any account of the user, deposits, withdrawals, company incentives and winnings throughout the year will also be required. There will be no tax on the money deposited by the users.