online lottery game for real money in india

Section 2(24)(ix) includes within the scope of the term ‘income’ any winnings from lotteries, crossword puzzles, races, card games and other games of any sort or form of gambling or betting of any form or nature whatsoever. It is useful to bear in mind that the winnings from online games is not an entirely new source of income that is brought to tax only now.

The term ‘net winnings’ is not presently defined but it is expected that Rules will be notified in due course for determining the manner of computing net winnings. The proposed amendment is structured to levy tax on ‘net winnings’ from online games.

Categorization of income from online games On the other hand, the new section 194BA mandates tax deduction on net winnings from online games without any threshold. The said section 194B prescribes a threshold of Rs.10,000, which is now proposed to be applied on a financial year basis, for invoking the tax deduction liability. It is pertinent to note that till, the obligation to deduct tax at source for winnings from online games would continue under Section 194B of the IT Act. This provision once effected will be applicable w.e.f. An obligation has also been cast on the payer to ensure that tax has been paid by the recipient when the winnings are given in kind. User account has been defined to mean any account of a user registered with an online gaming intermediary. The event of deduction is triggered either at the time of withdrawal or on the remaining amount at the end of the FY. Section 194BA provides for TDS on net winnings from online games in user account at the end of the Financial year (‘FY’).

This definition is likely to bring within its ambit, any game which is played on the internet. The term ‘Online game’ is proposed to be defined as a game that is offered on the internet and which is accessible by a user through a computer resource including telecommunication device. Real estate in India to scale new heights in 2024: Experts

Online lottery game for real money in india