Now online gamers will have to pay a tax.| Tax on online gaming platforms and online gamers.

Now online gamers will have to pay a tax:

If you also like to play online games then there is big news for you. The news is that your online gaming activities are being monitored by the government. The government or say the tax department is looking at how much money you are making in the hobby of gaming. Not good news for you. The income tax department is demanding tax from those who win money in online gaming. If all the money you've won in online gaming in the last three years, it's time to pay fines and heavy taxes.

According to the news of the English newspaper Business Standard, the Central Board of Direct Taxes (CBDT) in India had been scrutinizing the records of those who won money on online gaming platforms for some time. The Income Tax Department came to know that people have won an amount of about ₹ 58,000 crore in these games in the last three years. Taxes have not been paid on this amount by gamers. 

Now the income tax department has come out with the data that tax liability of about ₹ 20,000 crore is created on these online gamers. These include a 30% tax and penalty. That is, online gamers across the country who have won money will now have to pay a penalty of 30% tax on this winning amount. The CBDT has also started the process of collecting taxes from these games. The income tax department said that the winners should come forward on their own and pay their taxes. 

For this, online gamers will have to file their updated tax returns and make tax payments. The department has warned those winning money in online gaming that they should either come forward and make their tax payment or the department will take action against them on its behalf. CBDT has also collected this information by searching long and wide data. 

For this, the data for the financial years 2019-20, 2020-21, and 2021-22 has been scrutinized and for the three years of tax liability, the government has paid 30% directly on lottery crossword puzzle, racing, card games or any kind of games, and gambling. The tax has been imposed. No extension is available on this tax. Usually, on such name or purchase amount, the tax deduction is applicable at source i.e. TDS and you get the winning amount only after deducting the tax. 

Tax on online gaming platforms and online gamers:

The government has also been under pressure to tighten the rules and regulations of online gaming for some time now. Not only this, but discussions are also going on to increase the GST on these online games. In the meeting of the GST Council to be held later this month, a decision on charging 28% GST on casinos and online gaming and betting are likely to be taken. At present, the online gaming industry attracts 18% GST. 

The GST Council is considering increasing the tax on online gaming to 28%. From cricket to rummy, online gaming has taken the form of a shortage in India. People are also winning money in this and this whole business has spread rapidly from cities to villages. India is moving towards joining the world's largest markets in the online gaming industry. This market has grown rapidly in the last five years.

According to a report by KPMG, this industry will be worth $ 3.9 billion by 2025. Right now this industry is about 93 million dollars. In 2020, the number of online gamers in the country was about 360 million, which has increased to 39 crores in 2021. There has been an increase of 8%. This number is expected to increase further to 450 million in 2022. 

Not only this but a large number of jobs are also being created from this industry. It is believed that by 2023 this industry will give 10000 to 12000 jobs. Now the gaming industry is running at such a fast pace that even the government is seeing an opportunity to earn a lot from it. The income tax department and the Indian government are eyeing that the best tax should be collected from both the gaming platform and online gamers. 

Whatever the matter of the Indian government treasury. Now the government's plan is that if online gamers now win even ₹ 100, then they will have to give ₹ 30 directly to the government treasury first. We hope you like the information related to tax on online gaming. If you have any questions, please comment on our site www.tradeipohub.co.in. Thanks for reading.