TMI BlogSection 194BA - Winnings from online gamesX X X X Extracts X X X X X X X X Extracts X X X X ..... ised in such withdrawal, as well as on the remaining amount of net winnings in the user account, computed at the end of the FY. In case winnings is wholly in kind or partly in cash: In a case where the net winnings are wholly in kind or partly in cash, and partly in kind but the part in cash is not sufficient to meet the liability of deduction of tax in respect of whole of the net winnings, the person responsible for paying shall, before releasing the winnings, ensure that tax has been paid in respect of the net winnings. Deductee: Any person ( user - who accesses or avails any computer resource of an online gaming intermediary) winning from online gaming. Threshold Limit :- There is no threshold Limit. Rate of TDS: 30% on Net winning onlin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Note - Net winnings in the formula given in rule 133(2) shall be zero, if the sum of amounts B and C is equal to or greater than the amount A. [ Sub Rule 3 ] [ Sub Rule 4 ] Net winnings comprised in each subsequent withdrawal during the financial year, for the purposes of section 194BA, shall be calculated using the following formula, namely: Net winnings =A-(B+C+E), where A = Aggregate amount withdrawn from the user account during the financial year till the time of subsequent withdrawal including the amount of such subsequent withdrawal; B = Aggregate amount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 subsequent withdrawal; C = Opening balance of the user ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an the sum of amount A and D. [ Sub Rule 7 ] Meaning of certain Terms (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and includes any amount paid directly to the user not through the user account; and (c) withdrawal means any amount withdrawn by the user from any user account. Important Point for consideration Use Account - 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 deb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs and shall not be included in amount B or amount C or amount D; and whenever any bonus, referral bonus, incentives, promotional money, discount, by whatever name called, is not considered as part of amount B or amount C or amount D under clause (e) and subsequently they are re-characterised and allowed to be withdrawn, they shall be deemed as taxable deposit at the time of such re-characterisation and it shall be deemed that the equivalent amount has been deposited in the user account at that time. Powers of CBDT to issue Guidelines [ Section 194BA(3) ] If any difficulty arise in giving effect to the provisions of this section, THE CBDT may, with the previous approval of the Central Government, issue guidelines for the purposes of removin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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