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Income Tax on Online Games

Income Tax31/08/2024 Source: Income Tax

 

Online game:A game that is offered on the internet and is accessible by a user through a computer resource including any telecommunication device.

Internet:The combination of computer facilities and electromagnetic transmission media, and related equipment and software, comprising the interconnected worldwide network of computer networks that transmits information based on a protocol for controlling such transmission.

Applicable of Income Tax on Income by way of winnings from online games chargeable u/s 115BBJ

  1. This section provides that net winnings from any online game would be taxed at a flat rate of 30% plus surcharge, if applicable, plus health and educationcess 4%
  2. No expenditure or allowance can be allowed from such income.
  3. Deduction under Chapter VI-A is not allowable from such income.
  4. Adjustment of unexhausted basic exemption limit is also not permitted against such income.

How to disclose in ITR From

Income from online game will disclose in "Schedule Income from Other Sources" in head "Income chargeable at special rates"

Nature of income > "a(ii). Income by way of winnings from online games chargeable u/s 115BBJ"