On Monday, the Indian government stated that bonuses, referrals, and incentives provided by online gaming companies to their customers will be regarded as winnings and are liable to taxation.
As per the guidelines issued by the Central Board of Direct Taxes, online gaming companies will need to deduct taxes at the source when players claim their net winnings, encompassing bonuses or incentives.
The agency stated that bonuses or incentives won't be taxed if they aren't reported or withdrawn.
To calculate net winnings, the total deposits made by a customer throughout the year, along with the opening balance at the beginning of the year, will be summed up. This total amount will then be reduced by the withdrawn amount made by the customer.
At present, online gaming platforms impose a tax rate of 30% on the net winnings earned by players.
If the amount withdrawn by a player from online gaming winnings is below 100 rupees ($1.22) per month, online gaming companies will not be obligated to deduct taxes on those winnings.