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There has been a debate momentum on the fitting rate of taxation on online gaming. This is a growing trend in the gaming industry and has raised questions about how it should be taxed and its corresponding ITR Filing, particularly as more people engage in online gaming for income or as a source of r
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FAQ :
The new TDS rules for online gaming came into effect from April 1st, 2023.
A flat tax rate of 30% will apply to the net amount of total annual winnings from online gaming platforms.
No, the previous ₹10,000 limit for TDS deduction on winnings has been removed, and the 30% tax applies to all net annual winnings.
The gaming platform is responsible for paying taxes on the entire net winnings, even if the prize is partially or wholly in kind, before releasing it to the user.
Such earnings are categorized as 'income from other sources', and no expenses can be deducted from them.
Yes, if TDS has been deducted from your online gaming income, you can claim credit for it while submitting your Income Tax Returns (ITR).
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