Games people play: Skill or chance? Tax rates will differ, say experts

Any income arising from a game of any sort, which does not involve any skill, is taxed at the rate of 30 per cent

Many people had taken to online games during the lockdown. The possibility of earning a windfall, while playing from home, had attracted a lot of players to them. Now, with the deadline for filing income-tax return (ITR) approaching (July 31, 2022), gamers need to know the rules that govern taxation of income from online games.

Maneet Pal Singh, partner, I.P. Pasricha & Co says, “Any income, irrespective of its quantum, earned from online gaming must be reported while filing income-tax returns.”

Games of chance

First, the taxpayer needs to determine whether the game she/he played was one