Net winnings from online games: formula-based tax computation covers withdrawals, balances, deposits, and bonus treatment. Rule 135 prescribes formula-based computation of net winnings from online games for tax purposes, covering the general tax-year calculation, the first ... Summary
Net winnings from online games: formula-based tax computation covers withdrawals, balances, deposits, and bonus treatment.
Rule 135 prescribes formula-based computation of net winnings from online games for tax purposes, covering the general tax-year calculation, the first withdrawal, subsequent withdrawals, and the balance remaining in the user account at year-end. It defines non-taxable deposit, taxable deposit, and withdrawal, treats all user accounts of the same user on an aggregated basis, excludes transfers between such accounts from being treated as deposits or withdrawals, and deems payments outside the user account as taxable deposits and corresponding withdrawals. Bonus-type credits usable only for play are ignored unless later recharacterised as withdrawable, when they become taxable deposits.
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