The Income Tax Department of India has so far this quarter received approximately Rs 1,260 crore in taxes since the introduction of a new TDS regime for online gaming and cryptocurrency trading, according to CBDT Chairperson Nitin Gupta on Friday.
In an interview conducted after the budget, he said that approximately Rs 1,080 crore in taxes (under the tax deduction at source head) had been collected from online gaming.
In addition, he said that approximately Rs 180 crore had been mopped up through TDS during the 2023–24 fiscal from the taxation of virtual digital assets (cryptocurrency). Data is available through January 31.
On April 1, 2023, the Finance Act 2023 added a new provision to the Income-Tax Act, 1961 called 194BA. This section requires online gambling platforms to deduct income tax (TDS) from the net profits that a user has in their account.
Both at the moment of withdrawal and after the fiscal year, the tax must be withheld. On April 1, 2022, income derived from the transfer of cryptocurrencies or virtual digital assets will also be subject to a 30% tax.
The mentioned income is subject to taxation, even in cases where the taxpayer’s overall income falls below the Rs 2.50 lakh level. The only allowable deduction in determining the taxable amount is the acquisition cost.
When a person file their individual income tax return, they will additionally need to disclose their revenues from these two industries: online gaming and cryptocurrency trading.
Also Read: India’s Interim Budget Maintains Tough Crypto Taxes
