The Indian government is looking to tax winnings of online games as the sector grows in popularity. Quartz reports: Direct tax officials are scrutinizing the data for up to 58,000 crore rupees ($7.2 billion) won over the past three years on an online gaming platform, The Indian Express newspaper reported. Authorities have urged taxpayers to file taxes on such undeclared winnings for the past two assessment years, 2019-20 and 2020-21, the report said.
“Some may have earned more and some less… They are usually in a ledger account and they merge win and loss, it (data) is humongous,” Nitin Gupta, chairman of the Central Board of Direct Taxes, told The Indian Express. More than 20,000 taxpayers have filed updated returns for both 2020-21 and 2021-22 until Sept. 02, with undeclared tax payments valued at over Rs50 crore.
In May, India’s finance ministry proposed 28% GST on all earnings from online games, regardless of whether the game is based on skill or chance. The GST council will now review this during its meeting this month. […] The proposed taxation of 28%, along with 30% income tax on winnings, takes the total tax rate on online gaming between 45-50%, industry experts said. This could spell “game over” for the fledgeling industry.
