Budget 2023-24: Net winnings from online games to attract 30% TDS

Proposes 30% tax on net winnings, removes threshold of Rs 10,000

The government has proposed a 30 per cent tax on “net winnings” from online games. It also removed the existing minimum threshold limit of Rs 10,000.

Earlier, tax deducted at source (TDS) was calculated on the minimum threshold limit.

The proposed move will ensure that the game host deducts tax on the entire winnings even if it offers the sum in the form of coupons, tokens, or any other non-cash payments.

The Budget has introduced two new provisions for TDS on online gaming. These are levy of 30 per cent on payment of net winnings at the time of withdrawal