How much tax one has to pay on Online Gaming Winnings in India?
Question
Leave an answer
Finlaw Consultancy
Register Now
If You're New to this Website - Create an Account for 100% Free !!
Answer ( 1 )
Online Gaming Taxation in India is subject to specific rules and regulations that players must adhere to. The tax liability on online gaming winnings depends on various factors, primarily the nature of the game and the amount won. For games of skill like poker and fantasy sports, winnings are generally considered as income, and players are required to pay income tax in accordance with their tax slab. However, for games of chance like lotteries, the tax rate can be different. In the case of games subject to the Goods and Services Tax (GST), players are liable to pay 18% GST on the “net face value” of the stakes. This means that the tax is applicable to the margin between the total amount wagered and the total winnings.
It’s essential to maintain accurate records of your gaming activities, including deposits, withdrawals, and winnings, as the tax authorities may ask for these details during an audit. Non-compliance with Online Gaming Taxation rules can result in penalties and legal consequences.
In summary, the taxation of online gaming winnings in India depends on the nature of the game and the amount won. It is crucial for players to understand and comply with the relevant tax regulations to avoid any legal issues related to Online Gaming Taxation.