CBDT likely to issue clarification on taxation of gains made via online gaming

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The Central Board of Direct Taxes (CBDT) is likely to issue clarification on the taxation of gains made via winning through online gaming, sources informed CNBC-TV18.

It has identified that players are betting, winning and not paying taxes.

CBDT may give clarity for charging 0.1 percent tax deducted at source (TDS) on transactions of over Rs 10,000. Online gaming platforms will not be able to split the transactions to evade taxes.

Commenting on the same, Nitin Gupta, Chairman, CBDT said that they have mounted action on the same.

“We have data that around Rs 58,000 crore worth of money was made in the last 3 years. We will send intimations to those who have not paid taxes,” he said.

At present, winnings from online gaming are liable for tax at a flat rate of 30 percent. Each win is taxed. It is like lottery. Loss cannot be adjusted against the win.

On tax collections, Gupta said that there is a good momentum.

“We will know by December how the collections are moving,” he said.

Meanwhile, the net direct tax collection has increased by 23 percent to Rs 7.04 lakh crore so far this fiscal.

At the Finance Minister’s Award ceremony for CBDT officers, Gupta on Tuesday said the I-T e-filing portal has stabilised and it has facilitated 5.83 crore tax return filing as of July 31.

A record 72 lakh returns were filed on the portal on a single day.

July 31 was the last date for filing ITRs for salaried individuals for income earned in the 2021-22 fiscal. Gupta said I-T refunds worth Rs 1.41 lakh crore have been issued so far this fiscal, which is an increase of 83 percent over the same period last year. The CBDT chief said the department is using technology to increase income tax collection.

Source from: https://www.cnbctv18.com/personal-finance/cbdt-likely-to-issue-clarification-on-taxation-of-gains-made-via-online-gaming-14820601.htm

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