Online Gaming

The Central Board of Direct Taxes (CBDT) has issued guidelines clarifying TDS provisions on income by way of winnings from online games. CBDT has clarified that any deposit in the form of bonus, referral bonus or incentives credited in a user account will be considered net winnings and subject to tax deduction under section 194BA of the Act at the time of withdrawal as well as at the end of the financial year. This is in line with the new TDS rule on online gaming, effective from April 1, 2023.