Rule 133 - Net winnings from online games during the previous year - Income-tax Rules, 1962

..... er account at the end of the financial year. (2) Net winnings comprised in the first withdrawal during the financial year, for the purposes of section 194BA, shall be calculated using the following formula, namely: Net winnings =A-(B+C), where A = Amount withdrawn from the user account; B = Aggregate amount of non-taxable deposit made in the user account by the owner of such account during the financial year, till the time of such withdrawal; and C = Opening balance of the user account at the be .....

x x x x x   Extracts   x x x x x

Rule 133 - Net winnings from online games during the previous year - Income-tax Rules, 1962

x x x x x   Extracts   x x x x x

..... een deducted in accordance with the provision of section 194BA on winnings comprised in such withdrawal or withdrawals. (5) Net winnings in the formula given in sub-rule (4) shall be zero, if the sum of amounts B, C and E is equal to or greater than the amount A. (6) Net winnings comprised in the user account at the end of the financial year, for the purposes of section 194BA, shall be calculated using the following formula, namely: Net winnings =(A+D)-(B+C+E), where A = Aggregate amount withdra .....

x x x x x   Extracts   x x x x x

Rule 133 - Net winnings from online games during the previous year - Income-tax Rules, 1962

x x x x x   Extracts   x x x x x

..... n-taxable deposit and includes any amount paid directly to the user not through the user account; and (c) withdrawal means any amount withdrawn by the user from any user account. Explanation 2 . For the removal of doubts, it is hereby clarified that (a) user account shall include every account of user, by whatever name called, which is registered with the online gaming intermediary and where any taxable deposit, non-taxable deposit or the winnings made by the user is credited and withdrawal by t .....

x x x x x   Extracts   x x x x x

Rule 133 - Net winnings from online games during the previous year - Income-tax Rules, 1962

x x x x x   Extracts   x x x x x

..... ay be, for the purposes of deducting tax under section 194BA; (e) whenever there is taxable deposit in the form of bonus, referral bonus, incentives, promotional money, discount by whatever name called; and such deposit can only be used for playing the online games and not for withdrawal or any other purposes, such deposit shall be ignored for the purposes of calculation of net winnings and shall not be included in amount B or amount C or amount D; and (f) whenever any bonus, referral bonus, inc .....

x x x x x   Extracts   x x x x x

Rule 133 - Net winnings from online games during the previous year - Income-tax Rules, 1962

x x x x x   Extracts   x x x x x