Gaming: No TDS on winnings under Rs 100

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The Central Board of Direct Taxes (CBDT) recently issued guidelines pertaining to taxing monetary wins from online gaming. So, if you are an ardent gamer who has played on fantasy gaming platforms like Dream11, MPL during this IPL or indulged in any other sport, you’d like to sit up and take notice.

Here is a brief on what has changed for your online wins:

Remember the Rs 100 promotional bonus that you received, or referral money you get when you refer a friend and they join the platform?

All of this will now be subject to tax, but only in case you are able to withdraw them. In case you earn vouchers/coupons which are solely present for the purpose of playing and are not withdrawable, they will not be considered for tax purposes. And in case they are and are taken out, the monetary counterpart of such vouchers will be considered for “taxable deposit”.

If your net earnings within a month are less than Rs 100, you will be exempt from tax deduction at source. Keep in mind that the all the earnings will attract tax. Also, GST would not be included for the purpose of valuation of winnings.

If you have multiple accounts/wallets on a single gaming platform, the aggregate of each of their balances will be considered for computing taxes. The guidelines were issued to remove any confusion in tax deduction at source on winnings from online gaming, introduced in the Finance Bill this year.