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Gaming firms hail CBDT's online gaming TDS clarifications on bonuses & sops

TDS not to apply if bonuses are used only for playing, or if net winnings do not exceed Rs 100 a month, or if balance in the user account is not sufficient to discharge tax deduction

Online gaming
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Aryaman Gupta New Delhi

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The recent clarifications for taxation on bonuses and incen­tives received from online games, issued by the Central Board of Direct Taxes (CBDT) on Monday, have been largely welcomed by industry stakeholders. They say it will give a fillip to the burgeoning $2.2-billion Indian online gaming industry.

The apex tax body clarified that any deposit in the form of a bonus or incentive credited to a ‘user account’ will be considered net winnings and will, therefore, be subject to tax ded­u­ction in case of withdrawal. Money-equivalent deposits in the form of coins, coupons, and vouchers will also be taxable.
 
Tax deducted at

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First Published: May 23 2023 | 8:00 PM IST

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