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The online gaming sector is a rapidly growing industry that has potential of contributing significantly to the country's goal of becoming a USD 1 trillion digital economy, generating substantial employment, and fostering innovation, a report said. Regulation of online gaming will not only open up economic opportunities but also address various social issues, a report titled 'Online Gaming in India: The Taxation Quandary' by Primus Partners said. Announcements in Union Budget 2023-24 are positive for the sector as it has addressed the persistent ask to incorporate the offset of losses in the calculation of gains from online games for income tax, it said. A pertinent issue relating to the implementation mechanism proposed in the Union Budget for TDS (Tax Deducted at Source) on online games has been highlighted in the report. "The issue has arisen due to amendments to section 194B under which online gaming is currently covered from April 1, 2023 and the separate provision on online ..