The government has collected Rs 1,260 crore in TDS from online gaming and crypto trade in the current fiscal year, according to CBDT Chairperson Nitin Gupta.
The Central Board of Direct Taxes (CBDT) has revealed that it has collected about Rs 1,260 crore in taxes till now this fiscal after a new tax deduction at source (TDS) regime was brought in for online gaming and trade in cryptocurrency.
CBDT Chairperson Nitin Gupta said that about Rs 1,080 crore in taxes (under the TDS head) has been collected from online gaming and around Rs 180 crore through TDS has been mopped up during 2023-24 fiscal from the taxation of virtual digital assets (crypto currency), he told PTI during a post Budget interview .
The Finance Act 2023 inserted a new section, 194BA, in the Income-Tax Act, 1961, with effect from April 1, 2023, which mandates online gaming platforms to deduct income-tax (TDS) on the net winnings in the person’s user account. Tax is required to be deducted at the time of withdrawal as well as at the end of the financial year.
Similarly, from April 1, 2022, income from transfer of virtual digital assets or cryptocurrencies is taxable at 30 per cent. Such income will be taxable even if taxpayers’ total income is below the threshold limit of Rs 2.50 lakh and no deduction other than cost of acquisition is allowed while computing the taxable amount.
The earnings from these two sectors — online gaming and crypto trade — will also have to be shown by a taxpayer when they file their individual income tax return.
The CBDT chief said that the new TDS regime for these two sectors has helped in widening the tax base and bringing more transparency in these transactions.
He added that the CBDT is also keeping a close watch on the developments in the cryptocurrency market and is coordinating with other agencies to ensure compliance with the tax laws.
The CBDT is the apex policy-making body for direct taxes such as income tax and corporate tax.