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Skill vs chance: Taxman the referee in online gaming, say experts

Rate at which winnings are taxed depends on level of skill applied and whether there is 'luck' involved

Mobile gaming
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Winnings from games that involve chance are taxed under Section 115BB

Bindisha Sarang
The 2020 lockdown saw the virtual world become a reality for millions. Many, like Mumbai-based M. Lal (name changed on request), spent a lot of time playing online games. “I work in the travel industry that came to a standstill during the lockdown and has not picked up yet. Stuck at home, I play online games for entertainment. But with some games like rummy, poker, cricket, quizzes, and battleground games, you can make good money,” says Lal. 
 
According to a Deloitte India study, the amount of time spent by Indians on gaming apps increased 21 per cent during the