Gaming Industry and Regulatory Environment
While the gaming industry evolved from the traditional gaming methods to having a range of online gaming including real money coming and gambling platforms. There was no regulatory clarity from a TDS / Taxation perspective which continued references to the traditional games leading to a lot of confusion and uneven playfields for operators using different methodology.
With clarity on the TDS piece this ambiguity shall be put to rest with a common playing ground for all the operators in Gaming Industry.
We keenly await the next steps in regulating this Industry which will give an impetus to the booming industry of online gaming and having similar clarity in GST which is another Tax where a similar ambiguity exists.
Section 194BA & 115BBJ – Mystery Solved?
TDS on Player Winnings – Current
Section 194B provides that the person responsible for paying to any person any income by way of winnings from any lottery or crossword puzzle or card game and other game of any sort in an amount exceeding ten thousand rupees shall, at the time of payment thereof, deduct income-tax thereon at the rates in force.
Section 19BB similar provisions for deduction of tax at source for horse racing in any racecourse or for arranging for wagering or betting in any race-course.
Section 115BB rate of tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting of any form or nature.
