Bakyashree V, Sastra Deemed University
ABSTRACT
Online games are becoming an emerging dominant sector in the World. Especially, in country like India online gaming Industry are expected to grow about $5 billion by 2025. As we all know Income tax means a tax which is charged in the annual income of an individual or business earned in a financial year and according to the Income Tax Act, any game winnings are considered income and are subject to tax at 30% under Section 115BB. This includes the actual winnings and any bonuses, referral incentives, or other inducements offered by online gaming platforms. This article will provide a detailed and peculiar view on the new tax regime imposed on online games and its validity. Few scholars also feel that this tax on online games is a double burden on the people earning such money. This article will also provide a wide view on defects found in taxing these online games and will also discuss about the one of the trending problems on whether online betting games can be taxed or not.
Keywords: Income tax, Online games, betting
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