Calculation of Net winnings from online games during the previous year, for the purposes of section 115BBJ - New Rule 132 inserted - TDS Form 16, certificate amended - various TDS Returns / statements amended - Income-tax (Fifth Amendment) Rules, 2023 - 28/2023 - Income Tax

Extract

..... oviso to section 194N or in view of the notification issued under fifth proviso to section 194N;”; (b) in clause (xvii), after sub-clause (a), the following sub-clause shall be inserted, namely:- “(aa) winnings in terms of sub-section (2) of section 194BA;”. 3. In the principal rules, after rule 132, the following rule shall be inserted, namely:- “133. (1) Net winnings from online games during the previous year, for the purposes of section 115BBJ, shall be calculated using the following formula, namely:- Net winnings =(A+D)-(B+C), where - A = Aggregate amount withdrawn from the user account during the financial year; B = Aggregate amount of non-taxable deposit made in the user account by the assessee during the financial year; C = Opening balance of the user account at the beginning of the financial year; and D= Closing balance of the user 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of section 194BA, shall be calculated using the following formula, namely:- Net winnings =A-(B+C), where - A = Amount withdrawn from the user account; B = Aggregate amount of non-taxable .....

x x x x x Extracts x x x x x

x x x x x Extracts x x x x x

..... or greater than the sum of amount A and D. Explanation 1.- For the purposes of this rule - (a) “non-taxable deposit” means the amount deposited by the user in his user account and which is not taxable; (b) “taxable deposit” means any amount deposited in the user account which is not a non-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and includes any amount paid directly to the user not through the user account; and (c) “withdrawal” means any amount withdrawn by the user from any user account.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 the user is debited; (b) whenever there is payment to the user in kind or in cash, or partly in kind and partly in cash, which is not from the user account, the provisions of this rule shall apply to calculate net winnings by deeming that the money equivalent to such payment has been deposited as taxable deposit in the user account and the equivalent amount has been wit .....

x x x x x Extracts x x x x x

..... p;…………… ..………………………………… City…………………………………. Pin Code ……………………………. Assessment Year Period with the Employer From To Summary of amount paid/credited and tax deducted at source thereon in respect of the employee Quarter(s) Receipt Numbers of original quarterly statement of TDS under sub section (3) of section 200 Amount paid/credited Amount of tax deducted (Rs.) Amount of tax deposited/ remitted (Rs.) Total (Rs.) I. DETAILS OF TAX DEDUCTED AND DEPOSITED IN THE CENTRAL GOVERNMENT ACCOUNT THROUGH BOOK ADJUSTMENT (The deductor to provide payment wise details of tax deducted and deposited with respect to the deductee) Sl. No. Tax Deposited in respect of the deductee (Rs. ) Book Identification Number (BIN) Receipt numbers of Form No. 24G DDO serial number in Form No. 24G Date of transfer voucher dd/mm/yyyy Status of matching with Form No. 24G Total (Rs. ) II. DETAILS OF TAX DEDUCTED AND DEPOSITED IN TH .....

x x x x x Extracts x x x x x

..... ction 10(14) Rs. ... (g) Amount of any other exemption under section 10 clause … Rs. ... clause … Rs. ... clause … Rs. ... clause … Rs. ... clause … Rs. ... … Rs. ... (h) Total amount of any other exemption under section 10 Rs. ... (i) Total amount of exemption claimed under section 10 Rs. ... [2(a)+2(b)+2(c)+2(d)+2(e)+2(f)+2(h)] 3. Total amount of salary received from current employer Rs. ... [1(d)-2(i)] 4. Less: Deductions under section 16 (a) Standard deduction under section 16(ia) Rs. ... (b) Entertainment allowance under section 16(ii) Rs. ... (c) Tax on employment under section 16(iii) Rs. ... 5. Total amount of deductions under section 16 Rs. ... [4(a)+4(b)+4(c)] 6. Income chargeable under the head "Salaries" [(3+1(e)-5] Rs. ... 7. Add: Any other income reported by the employee under as per section 192 (2B) (a) Income (or admissible loss) from house property reported Rs. ... by employee offered for TDS (b) Income under the head other sources offered for TDS Rs. ... 8. Total amount of other income reported by the employee Rs. ... [7(a)+7(b)] 9. Gross total income (6+8) Rs. ... 10. Deductions under Chapter VI-A Gross Deductib .....

x x x x x Extracts x x x x x

..... p;…………………………………….working in the capacity of.………………………......... (designation) do hereby certify that the information given above is true, complete and correct and is based on the books of account, documents, TDS statements, and other available records Place…………………………......… Date………………………….......… (Signature of person responsible for deduction of tax) Full Name : …………………………… Annexure II In relation to specified senior citizen for tax deduction under section 194P A Whether opting out of taxation u/s 115BAC(1A)? [YES/NO] 1. Gross Salary (a) Pension as per provisions contained in clause (ii) of section 17(1) Rs. ... 2. Total amount of salary received Rs. ... 3. Less: Deductions under section 16 (a) Standard deduction under section 16(ia) Rs…. (b) Tax on employment under section 16(iii) Rs. ... 4 .....

x x x x x Extracts x x x x x

..... hellip;………………………….working in the capacity of .………………………......... (designation) do hereby certify that the information given above is true, complete and correct and is based on the books of account, documents, TDS statements, and other available records. Place…………………………..... (Signature of person responsible for deduction of tax) Date…………………………...... Full Name : …………………………… Notes: 1. Government deductors to fill information in item I of Part A if tax is paid without production of an income-tax challan and in item II of Part A if tax is paid accompanied by an income-tax challan. 2. Non-Government deductors to fill information in item II of Part A. 3. The deductor shall furnish the address of the Commissioner of Income-tax (TDS) having jurisdiction as regards TDS statements of the assessee. 4. If an assessee is employed under one employer onl .....

x x x x x Extracts x x x x x

..... ion of Salary). (330) (331) (332A) (332B) (333) (334) (335) (336) (337) (338) Reported total amount of salary received from other employer(s) (see Note 1 for definition of Salary). Travel concession or assistance under section 10(5). Death-cumretirement gratuity under section 10(10). Commuted value of pension under section 10(10A). Cash equivalent of leave salary encashment under section 10(10AA). House rent allowance under section 10(13A). PAN of landlord, if exemption is claimed under section 10(13A) (see Note 3). Other special allowances under section 10(14). Amount of any other exemption under section 10. Total amount of exemption claimed under section 10 (340 +341 +342 +343 +344+ 346A +346B). Total deduction under section 16(ia). (339) (340) (341) (342) (343) (344) (345) (346A) (346B) (347) (348) Total deduction under section 16(ii). Total deduction under section 16(iii). Income chargeable under the head "Salaries" [338+339- (347+348+ 349+350)]. Income (or admissible loss) from house property reported by employee offered for TDS as per section 192 (2B). PAN of lender, if interest on housing loan is claimed under section 24(b) (see Note 4). Income under the head other .....

x x x x x Extracts x x x x x

..... 5 of Annexure I for all the quarters in respect of each employee]. Reported amount of tax deducted at source by other employer(s) or deductor(s) (income in respect of which included in computing total taxable income in column 339). Total amount of tax deducted at source for the whole year (387+388). Shortfall in tax deduction (+) or excess tax deduction (‐) (386-389). (380) (381) (382) (383) (384) (385) (386) (387) (388) (389) (390) Notes: 1. Salary includes wages, annuity, pension, gratuity (other than exempted under section 10(10), fees, commission, bonus, repayment of amount deposited under the Additional Emoluments (Compulsory Deposit) Act, 1974 (37 of 1974), perquisites, profits in lieu of or in addition to any salary or wages including payments made at or in connection with termination of employment, advance of salary, any payment received in respect of any period of leave not availed (other than exempted under section 10 (10AA), any annual accretion to the balance of the account in a recognised provident fund chargeable to tax in accordance with rule 6 of Part A of the Fourth Schedule of the Income-tax Act, 1961, any sums deemed to be income received by the employee in .....

x x x x x Extracts x x x x x

..... g deductees/payees as in the vertical total of Col. 421 Total interest to be allocated among the deductees/payees mentioned below Sl. No. Deductee /payee reference number provided by the deductor/ payer, if available Deduct ee/ payee code (01- Company 02- Other than comp any) PAN of the deductee / payee Name of the deduct ee/ payee Section code (See Note 16) Date of payme nt or credit (dd/mm/ yyyy) Amount paid or credite d Amount of cash withdrawal in excess of Rs. 1 crore as referred to in section 194N (in cases not covered by the first proviso or third proviso to section 194N) Amount of cash withdrawal which is in excess of Rs. 20 lakh but does not exceed Rs 1 crore for cases covered by sub- clause (a) of clause (ii) of first proviso to section 194N (except cooperative societies) Amount of cash withdrawal in excess of Rs. 1 crore for cases covered by subclause (b) of clause (ii) of first proviso to section 194N (except cooperative societies) Amount of cash withdrawal in excess of Rs. 3 crore in case of co- operative societies as covered by third proviso to section 194N (in cases not covered by the first proviso to section 194N) Amount of cash withdrawal which is in excess of Rs. .....

x x x x x Extracts x x x x x

..... section197A other than the cases mentioned in sub-section (1F) of section 197A. 3. Write “C” if deduction is on higher rate under section 206AA on account of non-furnishing of PAN. 4. Write “D” if no deduction or lower deduction is on account of payment made to a person or class of person on account of notification issued under sub-section (5) of section 194A. 5. Write “E” if no deduction is on account of payment being made to a person referred to in Board Circular No. 3 of 2002 dated 28th June 2002 or Board Circular No. 11 of 2002 dated 22nd November 2002 or Board Circular No. 18/2017 dated 29th May 2017 6. Write “Y” if no deduction is on account of payment below threshold limit specified in the Income-tax Act, 1961. 7. Write “T” if no deduction is on account of deductee/payee being transporter. PAN of deductee/payee is mandatory [section 194C(6)]. 8. Write “Z” if no deduction or lower deduction is on account of payment being notified under section 197A(1F). 9. Write “M” if no deduction or lower deduction is on account of notification issued under second proviso to section 194N. 10. Write “N& .....

x x x x x Extracts x x x x x

..... B 194K Income in respect of units 94K 194LA Payment of Compensation on acquisition of certain immovable property 4LA 194LBA(a) Certain income in the form of interest from units of a business trust to a resident unit holder 4BA1 194LBA(b) Certain income in the form of dividend from units of a business trust to a resident unit holder 4BA2 194LB Income in respect of units of investment fund LBB 194LBC Income in respect of investment in securitization trust LBC 194N Payment of certain amounts in cash other than cases covered by first proviso or third proviso 94N 194N First Proviso Payment of certain amounts in cash to non-filers except in case of co-operative societies 94N-F 194N Third Proviso Payment of certain amounts in cash to co-operative societies not covered by first proviso 94N-C 194N First Proviso read with Third Proviso Payment of certain amount in cash to non-filers being co-operative societies 94N-FT 194-O Payment of certain sums by e-commerce operator to e-commerce participant 94O 194Q Payment of certain sums for purchase of goods 94Q 194R Benefits or perquisites of business or profession 94R First Proviso to subsection (1) of section 194R Benefits or perquisites of busine .....

x x x x x Extracts x x x x x

..... 194N) Amount of cash withdrawal which is in excess of Rs. 20 lakhs but does not exceed Rs. 1 crore for cases covered by sub-clause (a) of clause (ii) of first proviso to section 194N (except cooperative societies) Amount of cash withdrawal which is in excess of Rs 1 crores for cases covered by sub-clause (b) of clause (ii) of first proviso to Section 194N (except cooperative societies) Amount of cash withdrawal in excess of Rs. 3 crore in case of co- operative societies as covered by third proviso to section 194N (in cases not covered by the first proviso to section 194N) Amount of cash withdrawal which is in excess of Rs. 20 lakh but does not exceed Rs 3 crore for cases covered by sub- clause (a) of clause (ii) of first proviso read with third proviso to section 194N (in case of cooperative societies) Amount of cash withdrawal which is in excess of Rs 3 crore for cases covered by sub- clause (b) of clause (ii) of first proviso read with third proviso to section 194N (in case of cooperative societies) Amount paid or credited Tax Surcharge Health and Education Cess Total tax deducted [722+ 723 + 724] Total tax deposited [714] [715] [716] [717] [718] [719A] [719B] [720] [720A] [720B] .....

x x x x x Extracts x x x x x

..... of clause (a) or (b) of sub-section (1D) of section 197A. 8. Write “H” if no deduction is in view of proviso to sub-section (1A) of section 196D in respect of an income paid to a specified fund which is exempt under clause (4D) of section 10. 9. Write “I” if no deduction is in view of sub-section (2) of section 196D in respect of income of the nature of capital gains on transfer of securities referred to in section 115AD paid or payable to a Foreign Institutional Investor. 10. Write “J” if deduction is at higher rate in view of section 206AB for non-filing of return of income by the non-resident having a permanent establishment in India. 11. List of deductee codes Sr No. Deductee Code Description 1 01 Company, other than domestic company 2 02 Individual 3 03 Hindu Undivided Family 4 04 Association of Persons (AOP) except in case of AOP consisting of only companies as its members 5 05 Association of Persons (AOP) consisting of only companies as its members 6 06 Co-operative Society 7 07 Firm 8 08 Body of individuals 9 09 Artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act 1961 10 10 Others .....

x x x x x Extracts x x x x x

..... 96D(1) Income of foreign institutional investors from securities under sub-section (1) 96D 196D(1A) Income of specified fund from securities referred to in clause (a) of sub-section (1) of section 115AD (other than interest income referred to in section 194LD) 96DA” (e) in Form 27EQ, with effect from 1st July, 2023, - (i) in serial number 4, in the table, in column No. 4, for the words “Education Cess”, the words, “Health and Education Cess” shall be substituted; (ii) for “Annexure” the following “Annexure” shall be substituted, namely:- “ANNEXURE -: PARTY WISE BREAK UP OF TCS (Please use separate Annexure for each-line item in Table at Sl. No. 04 of main Form 27EQ) Details of amount received/debited during the quarter ended (dd/mm/yyyy) and of tax collected at source Name of the Collector TAN BSR Code of branch/Receipt Number of Form No. 24G Date on which challan deposited/Transfer voucher date (dd/mm/yyyy) Challan Serial Number/DDO Serial No. of Form No. 24G Amount as per Challan Total TCS to be allocated among collectees as in the vertical total of Col. 677 Total interest to be allocated among the collectees mentioned b .....

x x x x x Extracts x x x x x

..... i) or clause (ii) of the fifth proviso to sub-section (1G) or in view of notification issued under the clause (ii). Write "G" if no collection is on account of the second proviso to sub-section (IH) of section 206C. Write "H" if no collection is on account of sub-clause (A) or sub-clause (B) or sub-clause (C), or in view of notification issued under sub-clause (C), of clause (a) of the Explanation to sub-section (1H) of section 206C. Write “I” if collection is at a higher rate in view of section 206CCA. 10. List of Collectee Codes Sl No. Party Code Description 1 01 Company 2 02 Individual 3 03 Hindu Undivided Family 4 04 Association of Persons (AOP) except in case of AOP consisting of only companies as its members 5 05 Association of Persons (AOP) consisting of only companies as its members 6 06 Co-operative Society 7 07 Firm 8 08 Body of individuals 9 09 Artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act 1961 10 10 Others 11. Write collection code as mentioned below: Section Nature of collection Collection Code 206C Collection at source from alcoholic liquor for human consumption 6C A 206C C .....

x x x x x Extracts x x x x x