![]() Categorization of income from online games On the other hand, the new section 194BA mandates tax deduction on net winnings from online games without any threshold. The said section 194B prescribes a threshold of Rs.10,000, which is now proposed to be applied on a financial year basis, for invoking the tax deduction liability. It is pertinent to note that till, the obligation to deduct tax at source for winnings from online games would continue under Section 194B of the IT Act. This provision once effected will be applicable w.e.f. An obligation has also been cast on the payer to ensure that tax has been paid by the recipient when the winnings are given in kind. User account has been defined to mean any account of a user registered with an online gaming intermediary. The event of deduction is triggered either at the time of withdrawal or on the remaining amount at the end of the FY. Section 194BA provides for TDS on net winnings from online games in user account at the end of the Financial year (‘FY’). This definition is likely to bring within its ambit, any game which is played on the internet. The term ‘Online game’ is proposed to be defined as a game that is offered on the internet and which is accessible by a user through a computer resource including telecommunication device. ![]() Should you invest in Fixed Deposit or Recurring Deposit? Check the difference
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