Union Budget 2023 Online Gaming and Esports: Big blow for gamers, GOI proposes winners to pay TDS and taxes on winnings from mobile games: Union finance minister Nirmala Sitharaman announced the budget for the upcoming financial year, making much-needed changes in Online Gaming and Esports section. Going forward, there will be TDS and Taxability on winnings at the time of withdrawal or at the end of the financial year, Here’s all you need to know regarding the latest developments on Esports in the Union Budget 2023. For future updates on Gaming and Esports, follow InsideSport.IN
The Budget reads, “It is proposed to provide for TDS and Taxability on net winnings at the time of withdrawal or at the end of the financial year. Moreover, TDS would be without the threshold of 10000. For Lottery, crossword puzzles games, etc. threshold limit of 10k shall continue but shall apply to aggregate during a financial year.”
Union Budget 2023 Online Gaming and Esports Sector
In section 115BB of the Income-tax Act, for the Explanation, the following shall be substituted with effect from
the 1st day of April 2024, namely:–– ‘Provided that nothing contained in this section shall apply to income by way of winnings from any online game for the assessment year beginning on or after the 1st day of April 2024.
In section 115BBJ, Notwithstanding anything contained in any other provisions of this Act, where the total income of an assessee includes any income by way of winnings from any online game, the income tax payable shall be the aggregate of
(i) the amount of income tax calculated on net winnings from such online games during the previous year, computed in the manner as may be prescribed, at the rate of thirty per cent.; and
(ii) the amount of income tax with which the assessee would have been chargeable had his total income been reduced by the net winnings referred to in clause (i).
Readers can check out the full Budget from the link given below. CLICK HERE.
So, these are all about the Union Budget 2023 updates regarding Online Gaming. Popular eSports stakeholders are yet to react. So, stay tuned for more reactions on the same.
