Tax Will Be Levied On The Amount Won In Online Games : CBDT

The gaming industry in India has grown very rapidly in the last few years. At the same time, amidst the efforts of the Income Tax Department to check tax evasion in the gaming industry, the winners of online games will now have to pay a total tax of 30 percent with interest without any exemption. Along with this, they will have to pay an additional 25-30 percent amount on tax and interest. Winners of online games who fail to pay taxes by the stipulated time can be fined heavily.

Central Board of Direct Taxes (CBDT) Chairman Nitin Gupta said in an interview that the Income Tax Department is keeping an eye on tax evasion in the gaming industry. To avoid any action, the winners of the online game should disclose their income along with filing the updated Income Tax Return (ITR-U) and pay the applicable taxes. Normally the last date for filing ITR-U is 24 months after the end of the relevant assessment year. The last date for filing ITR-U ITR-U for the financial year 2021-22 is March 31, 2024. He said that the winners of games from various gaming portals should use ITR-U. In this, there is a provision to come forward and pay tax to avoid penalties.

The CBDT chairman said, that the reach of the Income Tax Department has increased to new sectors of the economy to check tax evasion. We are not restricting ourselves to just real estate or developers. Now we are knocking on new areas and sectors of the economy. These also include asset reconstruction companies, gaming, and betting activities. They are analyzing the data on foreign assets of Indian nationals.