Online gaming industry welcomes two new sections in I-T Act
The government has introduced Sections 194BA and 115BBJ to tax income that users earn by winning on gaming platforms. Section 194BA deals with tax deduction at source (TDS) while Section 115BBJ prescribes the tax rate on the winnings from online games. Both sections will take effect from 1st July 2023.
While welcoming the introduction of Section 194BA, All India Gaming Federation (AIGF) CEO Roland Landers said, “While we await CBDT’s clarifications and guidelines in this regard, we are hopeful that the certainty in taxation offered by the budget announcement will be a huge stimulus for the growth of the online gaming industry.”
Commenting on the union budget announcement, Ankur Singh, CEO and Founder,Witzeal Technologies, said, “We are thrilled with the announcement of the first budget of Amrit Kaal that envisions an empowered and inclusive economy driven on the fundamentals of technology and knowledge. India is now the third largest ecosystem for start-ups globallyand ranks second in innovation quality for middle-income countries. Fostering the development of start-ups in the online gaming industry, the initiative of ‘Make AI in India, make AI work in India’ will potentially boost the growth of gaming studios.