Reported By:| Edited By: Raunak Jain |Source: DNA Web Desk |Updated: Feb 02, 2023, 08:33 AM IST
Budget 2023: The Central Government presented the Budget 2023–24 at the Parliament on February 1st, 2023. The finance minister Nirmala Sitharaman indicated that a 30 per cent tax will be applied on the income earned from online gaming in the budget, which is important news for the online gaming industry. Additionally, the government has proposed eliminating the current limit of Rs. 10,000 on Tax Deducted at Source (TDS).
In the budget for 2023–2024, the Modi government has proposed a 30 per cent tax be applied to all winnings from online gaming. The budget includes two new provisions for TDS on online gaming, including a 30 per cent tax on the total winning amount paid in a financial year and the abolition of the previous threshold of Rs 10,000 for TDS collection. At the end of the fiscal year, tax at source will be paid out if the user does not withdraw the money from the account.
Media reports predict that India’s online gaming sector would grow to $5 billion by 2025. The industry has accelerated significantly after the introduction of 5G technology in 2023. The government’s plan to levy a 30 per cent tax on all winnings from online gambling will aid in the regulation and monetization of the sector, keeping a check on the activities and guaranteeing that players are playing in a safe and secure environment.
Rajeev Chandrasekhar, the minister of state for electronics and information technology, had before advocated for stronger regulations on online gaming. The government’s commitment to a trustworthy, accountable, and secure Internet is reflected in the proposed IT Rules revisions. The government has made sure the changes will go through open consultation before implementation.
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