Part DCA - Safe Harbour Rules for income referred to in clause (i) of sub-section (1) of section 9 chargeable to tax under the head (From Rule 10TI to Rule 10TIC)
Net winnings from online games are computed through prescribed formulas, with special rules for deposits, withdrawals, bonuses and multiple accounts. Calculation of net winnings from online games is prescribed by separate formulas for annual computation, first withdrawal, subsequent withdrawals and year-end balance, with prior winnings already subjected to tax deduction excluded from later calculations. The rule defines non-taxable deposit, taxable deposit and withdrawal, treats payments made outside the user account as deemed taxable deposits and withdrawals, aggregates multiple user accounts of the same user, and disregards transfers between such accounts. Bonus, referral bonus, incentives, promotional money and similar amounts usable only for play are ignored unless later recharacterised as withdrawable, in which case they are deemed taxable deposits.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Net winnings from online games are computed through prescribed formulas, with special rules for deposits, withdrawals, bonuses and multiple accounts.
Calculation of net winnings from online games is prescribed by separate formulas for annual computation, first withdrawal, subsequent withdrawals and year-end balance, with prior winnings already subjected to tax deduction excluded from later calculations. The rule defines non-taxable deposit, taxable deposit and withdrawal, treats payments made outside the user account as deemed taxable deposits and withdrawals, aggregates multiple user accounts of the same user, and disregards transfers between such accounts. Bonus, referral bonus, incentives, promotional money and similar amounts usable only for play are ignored unless later recharacterised as withdrawable, in which case they are deemed taxable deposits.
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