30% TDS on online gaming | Bitcointalksearch.org

teosanru

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Quote from: pakhitheboss on May 21, 2023, 10:21:19 PM

Quote from: teosanru on May 21, 2023, 02:02:23 PM

No you are confusing GST with Direct Income tax. The Income tax on winnings from any type of game comes under winning from lotteries board games etc. No matter if it's a skilled game or an unskilled one. TDS is being implemented on this type of incomes in digital space. GST reduction on the other hand would mean the fees that you'll pay while purchasing these games will become cheaper as the GST rate on it would fall.

Thanks for clearing my confusion, in the end my conclusion is that whatever you do the government wants to tax you. We still are not getting taxed for breathing Grin

. May be in the future it might be happen Wink

.

Hahaha, that might be a pretty dark future if you imagine it. But even if you see today we are already paying a hell lot of tax. You might have seen that car example, first you pay income tax when you earn the money to buy the car, then you'll pay GST and cess on the car, then you'll pay Road tax on the car, then you'll pay toll tax if you travel outside the city using highway, then you'll pay hefty excise duty on Petrol diesel used in the car, after all this don't forget wearing seat belt or be ready to pay another tax in form of fine to the government.

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Quote from: avikz on May 23, 2023, 12:51:09 PM

Indian government is trying to kill the online gaming industry as well as crypto industry in every way possible. This 30% tax has been imposed intentionally so that the people of India stays away from it. The thought is noble but the execution is poor. Probably some useless bureaucrats advising the finance ministry of such action.

Unfortunately the government isn't trying to address the main issue of unemployment. If people are unemployed, they will try to find alternative ways to make money. Government needs to understand the main challenge rather than just imposing tax. Quite unfortunate!

Quite unfortunate, that Indian government is unable to sueeze money from the rich.
Quite unfortunate, that Indian government is unable to serve the needs of the poor.
Quite unfortunate, that Indian government is the reason why middle class people are so stressed that eventually causes deaths.

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Quote from: avikz on May 23, 2023, 12:51:09 PM

Indian government is trying to kill the online gaming industry as well as crypto industry in every way possible. This 30% tax has been imposed intentionally so that the people of India stays away from it. The thought is noble but the execution is poor. Probably some useless bureaucrats advising the finance ministry of such action.

Unfortunately the government isn't trying to address the main issue of unemployment. If people are unemployed, they will try to find alternative ways to make money. Government needs to understand the main challenge rather than just imposing tax. Quite unfortunate!

This absurd percentage as tax! The government fails to get tax from the poor class and the rich class. What they are more interested is in squeezing the middle class by any means. What they are doing is showing the middle class their middle finger.

Any income which can help the Indian middle class reach their dream get the middle finger tax. This has been the attitude of every government for the past 75 years.

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Indian government is trying to kill the online gaming industry as well as crypto industry in every way possible. This 30% tax has been imposed intentionally so that the people of India stays away from it. The thought is noble but the execution is poor. Probably some useless bureaucrats advising the finance ministry of such action.

Unfortunately the government isn't trying to address the main issue of unemployment. If people are unemployed, they will try to find alternative ways to make money. Government needs to understand the main challenge rather than just imposing tax. Quite unfortunate!

pakhitheboss

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I was under the impression that online Gambling and Betting fall under this tax slab. This crazy! I can understand about Gambling and Betting but why normal online gaming industry. This tax slab doesn't make any sense to me. As per my understanding like cryptocurrency, online gaming is an emerging market for India. The government is trying to stop both industry from emerging. This proves how much these babus have an idea about technology.

pawanjain

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Quote from: pakhitheboss on May 21, 2023, 10:21:19 PM

Quote from: teosanru on May 21, 2023, 02:02:23 PM

No you are confusing GST with Direct Income tax. The Income tax on winnings from any type of game comes under winning from lotteries board games etc. No matter if it's a skilled game or an unskilled one. TDS is being implemented on this type of incomes in digital space. GST reduction on the other hand would mean the fees that you'll pay while purchasing these games will become cheaper as the GST rate on it would fall.

Thanks for clearing my confusion, in the end my conclusion is that whatever you do the government wants to tax you. We still are not getting taxed for breathing Grin

. May be in the future it might be happen Wink

.

Quote from: pawanjain on May 21, 2023, 10:47:46 AM

There are basically 2 types of games which are luck based games and skill based games.
Luck based games does not require and effort and it's just more of guessing the outcome such as playing a dice game.
All other games are skill based games and requires some kind of skill and effort to win the game such as playing poker or any other cards game.

What about non Gambling games? There are many games that regularly conduct tournaments. Like free fire, Call of duty , Carrom and etc. I have read and heard that they do organise regular tournaments. The winners do get cash rewards, so does that mean the same tax slab is also applicable. If yes, then the government is not helping the gaming industry.

Yes, the same tax slab would be applicable to those winners as well because it comes under skill based games as well as online games.
So there's no other option other than paying the taxes on those winnings.

pakhitheboss

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Quote from: teosanru on May 21, 2023, 02:02:23 PM

No you are confusing GST with Direct Income tax. The Income tax on winnings from any type of game comes under winning from lotteries board games etc. No matter if it's a skilled game or an unskilled one. TDS is being implemented on this type of incomes in digital space. GST reduction on the other hand would mean the fees that you'll pay while purchasing these games will become cheaper as the GST rate on it would fall.

Thanks for clearing my confusion, in the end my conclusion is that whatever you do the government wants to tax you. We still are not getting taxed for breathing Grin

. May be in the future it might be happen Wink

.

Quote from: pawanjain on May 21, 2023, 10:47:46 AM

There are basically 2 types of games which are luck based games and skill based games.
Luck based games does not require and effort and it's just more of guessing the outcome such as playing a dice game.
All other games are skill based games and requires some kind of skill and effort to win the game such as playing poker or any other cards game.

What about non Gambling games? There are many games that regularly conduct tournaments. Like free fire, Call of duty , Carrom and etc. I have read and heard that they do organise regular tournaments. The winners do get cash rewards, so does that mean the same tax slab is also applicable. If yes, then the government is not helping the gaming industry.

teosanru

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Quote from: pakhitheboss on May 21, 2023, 04:09:02 AM

I am not sure whether it has been implemented or not but for skilled online gaming, the government had proposed a reduction. From 30 percent it was proposed to 18 percent. As I am not into any kind of online gaming I do not understand what it meant by skilled gaming.

Quote

Online games where winning is dependent on a certain outcome or is in the nature of betting or gambling would attract 28% Goods and Services Tax (GST), while those which involve some amount of skill could be taxed at a lower 18%

This news came out last month. The thing is that government does not believe that cryptocurrency does not require any skills. That is why we are still in the highest tax bracket.

No you are confusing GST with Direct Income tax. The Income tax on winnings from any type of game comes under winning from lotteries board games etc. No matter if it's a skilled game or an unskilled one. TDS is being implemented on this type of incomes in digital space. GST reduction on the other hand would mean the fees that you'll pay while purchasing these games will become cheaper as the GST rate on it would fall.

pawanjain

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Quote from: pakhitheboss on May 21, 2023, 04:09:02 AM

I am not sure whether it has been implemented or not but for skilled online gaming, the government had proposed a reduction. From 30 percent it was proposed to 18 percent. As I am not into any kind of online gaming I do not understand what it meant by skilled gaming.

Quote

Online games where winning is dependent on a certain outcome or is in the nature of betting or gambling would attract 28% Goods and Services Tax (GST), while those which involve some amount of skill could be taxed at a lower 18%

This news came out last month. The thing is that government does not believe that cryptocurrency does not require any skills. That is why we are still in the highest tax bracket.

There are basically 2 types of games which are luck based games and skill based games.
Luck based games does not require and effort and it's just more of guessing the outcome such as playing a dice game.
All other games are skill based games and requires some kind of skill and effort to win the game such as playing poker or any other cards game.

As far as taxation is considered I had received this mail from cleartax and a flat 30% TDS will now be applicable on net winnings from any kind of games.
It won't change anything for gamblers using cryptocurrency because a flat 30% tax on profits is any how levied on crypto income.

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I am not sure whether it has been implemented or not but for skilled online gaming, the government had proposed a reduction. From 30 percent it was proposed to 18 percent. As I am not into any kind of online gaming I do not understand what it meant by skilled gaming.

Quote

Online games where winning is dependent on a certain outcome or is in the nature of betting or gambling would attract 28% Goods and Services Tax (GST), while those which involve some amount of skill could be taxed at a lower 18%

This news came out last month. The thing is that government does not believe that cryptocurrency does not require any skills. That is why we are still in the highest tax bracket.

teosanru

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I think it's overall not a very bad move because this is a very unorganised sector and Really needs some interference from the govt. because the tax on this income already exists, TDS will just be an advanced deduction on this. Also in such situations of unorganised markets like the Online gaming it's quite important for the government to make sure that tax evasion doesn't takes place. Also if you see these days dream 11 pays less amount for each match but chances are in 70 matches this amount will exceed 10k so it's a good idea to keep the deduction before itself.

pawanjain

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I live in India, and the government has implemented a new policy regarding online gaming winnings.
They have introduced a 30% upfront tax on net winnings for individuals engaged in online gambling.
While this is a significant change, it is aimed at ensuring taxation compliance and contributing to the country's revenue.
However, it is important to note that this policy might influence the online gaming landscape in India.

Source: Cleartax

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