How is Online Gaming Taxed Under Income Tax Act?
There are many games online games which allow the players to win money, and this is the best online pastime for many of them. The games like online poker, rummy, cards names, spin o win games, roulette, and many such allow the players to win heavy cash prizes in their spare which has also been an extra source nowadays with their respective jobs.
The Corona Virus pandemic has also played its part in growing the online gaming industry so massively. When the whole country was under strict lockdown, the gaming companies had created new things which would attract the players and the online surfers of the internet. So, the gaming companies had new registrations on their gaming portals which have given a new rise to this industry.
In our country, India, the gaming industries, and platforms have big investments. The games are not only about cars and cards or the game of skill. But there are online quizzes and riddles. If t e players answer them correctly, they might end up winning prizes and with that, the players can also play rummy, poker, and sports game like cricket, football, tennis, and basketball which itself is a great pastime for the loners during this lockdown.
Meanwhile, there are several platforms that provide information to the users about online casino sites, and they give a proper review to a player before going for any deposit or withdrawal. The user gets a clear picture by going through the review of the brands on their platform.
Tax on Games
The players who win the online games should pay the taxes on it because they need to declare the source of additional money which they have earned. The income generated through online gaming needs to be shown to the bank and income tax department while filing the IT returns. The above rule is not stated by us. But the Supreme Court of India has declared this rule for all the members of this country.
Tax on Games Online
Tax is an important factor in India for those who earn, and now online gaming is also taxable even without the laws which are still unsure whether betting, gambling, the game of skills, and chance are legal or illegal. Still, they are taxable for the players, and all they need to understand is those factors while playing those types of games.
Declare the winner’s money
Many gaming, gambling, and betting websites ask for PAN Card and Adhar Card from which the bank statements can be seen through the mentioned number on those cards. But still, it is the responsibility of the gamer to see whether the winner gets the full winning amount as they should have the correct tax form. And the players should also declare that amount in their IT returns form. If the game owners and players do not do, then legal action can be taken by the income tax department.
The players also need to play the game with responsibility and pay their taxes with the same intensity as they play. The online game is a good source of income and so the players need to declare the winning amount which will also mean that they play the online game legally and they can continue to have fun and earn more through this source as well.