Gaming has gone viral among millennials and has witnessed a massive growth due to the widespread adoption of smartphones, tablets, and affordable data plans. Currently, the online gaming industry is projected to have about 300 million users in India. As the outbreak of the COVID-19 pandemic hit India and resulted in nationwide lockdowns, gaming companies have been witnessing a huge spike in new registrations. The net result? There’s been an incredible rise in the popularity of online gaming in India.Making money from gaming While certain games are played for thrill, some games offer the chance to win money too. Although the laws and regulations around online gaming in India are still not clear, it is now possible for Indian gamers to gamble legally and securely, while also gaining a chance to make profits and earn an extra buck. In India, the law does not distinguish between games of skill and games of chance, such as rummy or poker, or between legal or illegal games. Even being a grey area, this is not exempted from the ambit of taxation.
There are several gaming websites like Zapak, Miniclip, Shockwave, Gamesonline and Agame that offer a massive collection of games providing an entertaining single and multi-player experience. You can try one of these above apps or sites to get a high-quality gaming experience. The popular categories are action, adventure, cards, board, jigsaw, music, puzzle, racing, shooter, sports, strategy and word games, among others. This endless collection of games is updated on a regular basis.Case study 0% Read COPYRIGHT © 2015-2021 Transamerica Direct Marketing Consultants Private Limited. All Rights Reserved.
No matter where or how you gamble, you are liable to pay tax on your winnings. You will need to declare the additional gaming income while filing your IT returns, and will be taxed accordingly. The gaming income is to be reported at the time of filing of the gamer’s tax returns. As a rule of the thumb, all the income and winnings generated from online betting or casino gambling activities will incur a flat 30% tax without cess and without accounting for the basic exemption limit. After adding 4% cess, the ultimate tax rate for all casino and gambling earnings in India amount to 31.2%. This is a welcome source of additional revenue for the government. When you win some real money on your favourite games, how much of your winnings can you expect to bring home? Is there an online and offline gambling tax in India? Are online gamers mandated to pay tax on their winnings? Read on to find out. Gaming apps/sites Related: Lessons on investing from creating a cricket dream teamResponsible playing Here’s a word of advice: playing responsibly also means paying your taxes on the winnings. So, always make it a point to pay taxes on time, even as you indulge in betting responsibly, and file your returns at the end of the year. This helps you keep things legal and continue gaming or gambling within the purview of the Indian laws. Look at these 5 Games that can improve your financial skills.Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas. Related: Mobile games that will help you learn about stocks
Income earned while playing online games is subject to tax under Section 115BB of the Income Tax Act, 1961, and is taxed under the head ‘Income from Other Sources’. The Section specifies that any winnings from lotteries, crossword puzzles, race betting, card games such as Andar Bahar, Teen Patti, and online rummy on reputable online casino platforms, as well as gambling or betting of any form or nature, falls under this purview. The tax rule is also applied to winnings from online gaming, irrespective of an individual’s total income, with no exemptions being made.Online games that let you earn real money As online gaming provides an opportunity to win money while sitting at home, several people are getting attracted to become professional gamers. This has also been a key incentive for the younger generation to become full-time gamers.The income tax conundrum on games Stay informed – subscribe to our newsletter Related: Investing strategies you can learn from FIFA World Cup