TDS on online game winnings restructured: withholding on net account winnings and withdrawals under new targeted provisions. Amendments require TDS on winnings to be applied to amounts or aggregates exceeding the threshold in a financial year; section 194B is expanded to include ... Summary
TDS on online game winnings restructured: withholding on net account winnings and withdrawals under new targeted provisions.
Amendments require TDS on winnings to be applied to amounts or aggregates exceeding the threshold in a financial year; section 194B is expanded to include gambling and excludes online games from 1 July 2023. A new section 194BA mandates TDS on net winnings in user accounts at year-end and on withdrawals, with prescribed computation and payer obligations where winnings are in kind. Administrative guidelines may be issued to resolve implementation issues. Definitions for computer resource, internet, online game, online gaming intermediary, user and user account are prescribed. Section 115BB is amended to exclude online-game winnings and a new section 115BBJ establishes a separate tax computation for net winnings from online games integrated into overall tax liability.
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