Tax deduction on online game winnings requires payers to deduct income tax on users' net winnings and withdrawals. A new provision requires persons paying winnings from online games to deduct income-tax on net winnings in a user's account at the end of the financial year, computed as prescribed; on withdrawals during the year tax is deducted on withdrawn net winnings and on remaining net winnings. Payers must ensure tax is paid before releasing wholly in-kind or partly in-kind winnings when cash is insufficient. The Board, with central approval, may issue binding guidelines to address difficulties; specified definitions for online gaming terms are included.
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Tax deduction on online game winnings requires payers to deduct income tax on users' net winnings and withdrawals.
A new provision requires persons paying winnings from online games to deduct income-tax on net winnings in a user's account at the end of the financial year, computed as prescribed; on withdrawals during the year tax is deducted on withdrawn net winnings and on remaining net winnings. Payers must ensure tax is paid before releasing wholly in-kind or partly in-kind winnings when cash is insufficient. The Board, with central approval, may issue binding guidelines to address difficulties; specified definitions for online gaming terms are included.
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