Budget 2023 Expectations: Online gaming industry seeks clarity on tax levy

Budget 2023 Expectations: Government could give a big clarification on tax ambiguities currently existng in the online gaming sector in the upcoming Budget 2023, Zee Business' Tarun Sharma reported, citing his top sources. Under the current rules, companies deduct tax at source if a player wins Rs 10,000 or more in an online game. The ambiguity is if a person wins multiple games and every time the winning amount is less than Rs 10,000, will he be liable for paying TDS on the total amount. 

This ambiguity has resulted in loss of revenues for the government. There is a view that either the exemption amount of Rs 10,000 is reduced or a levy is collected on  the overall amount exceedig the threshold limit of Rs 10,000.

The Central Board of Direct Taxes (CBDT) is of the view that the government's revenue collected through online gaming would increase once a clarity comes of this issue.

The industry wants government to levy taxex on individual games and not on the whole advising against any clubbing of the amount. Industry opines that the winning amounts are pretty large than the exemtion limit of Rs 10,000.

Meanwhile, the government has argued that it is unable to keep a track on those people whose winning amount is lower than Rs 10,000. In view of this it wants to either lower the exemption limit or charge taxes by clubbing the winning amounts. 

Online ganing stocks like Delta Corp and Nazara Technologies today ended on the NSE with gains tracking advances in frontline indices S&P BSE Sensex and NSE Nifty50. While Delta Corp close at Rs 205, up by Rs 3.25 or 1.61 pe rcent from the Friday closing price, Nazara Technologies finished at Rs 591, up by Rs 2.25 or 0.38 per cent. Meanwhile, OnMobile Global shares settled down by 0.64 per cent at Rs 93.10.

Indian frontline indices S&P BSE Sensex and NSE Nifty50 ended Monday on a positive note. While the Sensex ended at 60,941.67, up by 319 points or 0.53 per cent while the broader market Nifty50 advanced by 90.90 points or 0.50 per cent at 18,118.55. The banking gauge Nifty Bank settled at 42,821.25, up by 314.45 or 0.74 per cent.    

In the 50-stock Nifty50, 32 advanced while 18 declined. The top gainers were Sun Pharmaceuticals, Hindustan Unilever, Eicher Motors, UPL and Tech Mahindra while top losers were Ultratech Cement Company, Grasim Industries, NTPC, Tata Steel and JSW Steel.