Tax authorities on both the direct and tax that is indirect are raising scrutiny for possible evasion in one major upcoming sector — online gaming. Direct tax officials are learnt to be scrutinising data for winnings to the tune of Rs 58,000 crore over a span of three years for an gaming that is online, urging taxpayers in the future forward and pay taxes. Meanwhile, a team of Ministers (GoM) will meet to discuss the contours of Goods and Services Tax (GST) for online gaming, horse racing and casinos.The Indian ExpressCentral monday Board of Direct Taxes (CBDT) Chairman Nitin Gupta has urged taxpayers to come forward and report the winnings that are undeclared the web gaming platform within the facility for updated returns, that allows taxpayers to update their information for last two assessment years, in other words. FY20 and FY21. “It is an(online that is indian) company … requesting the winners to come forward and file the updated return to pay the tax. Whatsoever data we have, we shall proceed forward. Taxpayers should come forward voluntarily and it’s also the thing that is best. Some may have earned more and some less, some might have earned in millions and some in small amounts. They are usually in a ledger account and they merge win and loss, it (data) is humongous,” he told
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GameKing, Dream 11, Nazara Technologies are some big players in the gaming industry that is online. The gaming that is online is currently contributing more than Rs 2,200 crores of GST, as per a recent study by EY and Assocham.
Tax authorities are asking taxpayers to make use of the updated returns facility introduced under Section 139 (8A) in this year’s Budget to report any such transactions that are undeclared. According To the Income Tax Department, over 1.55 lakh updated ITRs have now been filed as much as 2 and more than 20,000 taxpayers have filed updated ITRs for both AYs 2020-21 and 2021-22.
“Over september Rs 50 crore worth of undeclared tax payments have come in through these updated returns. In times to come, this is expected to increase,” a tax that is senior official said.Winnings from lottery or prize money inside a competition are prone to an appartment rate of tax at 30 per cent without having any exemption limit that is basic. {In such a case, the payer of prize money will generally deduct tax at source (TDS) from the winnings and will pay only the balance amount.Click to get the day’s best explainers in your inbox
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|The payer of prize money will generally deduct tax at source (TDS) from the winnings and will pay only the balance amount.
Source link Newsletter(* in such a case} | (*)“No expenses allowed. If the game has been lost by you, nothing is allowed. Each win is taxed. It is like a lottery. Loss cannot be adjusted against the win. We are looking into it and the figure could be huge. Some data have been collected by us on that. It is left by us to taxpayers to come forward and pay taxes as there is a facility of updated returns,” Gupta said.(*)The GoM on casinos, horse lottery and racing is anticipated to finalise the valuation process for taxing these categories under GST. It had earlier finalised a uniform 28 per cent tax on all three categories, then again was handed more hours to examine its recommendations that may then be studied up within the GST that is next Council, apt to be held by mid-September.(*)
