May 23, 2023
Tax dept issues guidelines on how to compute online gaming taxes
The Central Board of Direct Taxes (CBDT) has released guidelines on the computation of taxes on income made from online games, as per the changes introduced in Union Budget 2023-24 which aimed to bring clarity to the matter.
The CBDT has clarified that in cases where net winnings comprised in the amount withdrawn does not exceed Rs 100 in a month, the applicable tax need not be deducted. This also extends to scenarios where the balance in the user account at the time of tax deduction under section 194BA of the Act is not sufficient to discharge the tax deduction.