The recent clarifications for taxation on bonuses and incentives received from online games, issued by the Central Board of Direct Taxes (CBDT) on Monday, have been largely welcomed by industry stakeholders. They say it will give a fillip to the burgeoning $2.2-billion Indian online gaming industry.
The apex tax body clarified that any deposit in the form of a bonus or incentive credited to a ‘user account’ will be considered net winnings and will, therefore, be subject to tax deduction in case of withdrawal. Money-equivalent deposits in the form of coins, coupons, and vouchers will also be taxable.
Tax deducted at