Tds on online gambling if win amount exceeds 100 rupees, cbdt clarifies. Here’s the new rule players should know – News18 Hindi

New Delhi. The Income Tax Agency said on Monday that gaming platforms are not required to pay TDS (Tax Deducted at Source) if the net winnings amount on online games is less than Rs 100 rupees. The Central Board of Direct Taxes (CBDT), the umbrella organization of the Income Tax Department, has mandated the process and procedure relating to TDS for online gambling under Rule 133 of the Income Tax Act. Accordingly, the net winnings for an online game are calculated after deduction of the total deposits. Dream11 and My11Circle are examples of online gaming.

Accordingly, online gaming platforms only have to deduct TDS if the net win amount exceeds 100 rupees. Previously, the Finance Act 2023 introduced a new Section 194BA into the Income Tax Act 1961, requiring online gambling platforms to deduct income tax from the amount of net winnings deposited into the relevant person’s account. It is worth noting that the referral, bonus and incentive also count towards the net win amount.

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How much will the net profit be?
The remaining win amount after deducting the amount of money the player wagered in the game is considered the net win amount. If the person invested 150 rupees in the game and won 200 rupees, their TDS will not be deducted. Because in this equation, the net amount won by him is only 50 rupees. If he wins 350 rupees, the gaming platform has to deduct TDS before paying him the winning amount. If the same person has different accounts, the total amount deposited in all these accounts will be taken into account when calculating the tax.

What happens after depositing coupons and coins?
The picture was also clarified in the CBDT circular. According to the circular, if coins, coupons, vouchers or counters, etc. are deposited instead of rupees, their value in rupees is considered taxable. The CBDT instructed the gaming companies, saying that the companies should pay the tax amount for April and May by June 7th. If they don’t, they have to pay a fine.

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Keywords: Business news in Hindi, CBDT, dream 11, earn money, income tax