Winnings from online games to be taxed at flat 30%, on par with cryptos, proposes Budget 2023

Income Tax

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Feb 02, 2023

Budget 2023 has proposed taxing winnings from online games at a flat 30%. According to the current income tax laws, these winnings are taxed as per the income tax slab applicable to the income of the individual concerned.

According to the Budget 2023 memorandum, “(viii) to amend section 115BB of the Act to exclude income from winnings from online games from the purview of the said section from the assessment year 2024-25, since it is proposed to introduce section 115BBJ to tax winnings from online games from that assessment year;
(ix) to insert a new section 115BBJ in the Act with regard to tax on winnings from online games to provide that where the total income of an assessee includes any income by way of winnings from any online game, the income-tax payable shall be the aggregate of—
• The amount of income-tax calculated on net winnings from such online games during the previous year, computed in the prescribed manner, at the rate of thirty percent;

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