IT dept Collects Over 700 Crore in TDS from Online Gaming and Crypto Trade

By siliconindia  |  Wednesday, 11 October 2023, 17:14 IST

IT dept Collects Over Rs.700 Crore in TDS from Online Gaming and Crypto Trade
The Income Tax department has made substantial collections of over ?700 crore this fiscal year following the introduction of a new Tax Deducted at Source (TDS) regime for both online gaming and cryptocurrency trading. In a recent announcement, CBDT Chairperson Nitin Gupta revealed that the government has successfully amassed these funds as part of their initiative to ensure that these rapidly growing industries are contributing their share of the nation's revenue. Here are the key highlights of this development: This is with reference to exploring an interaction a quote or an authored article opportunity for Mr. Abhishek Malhotra. He is the Managing Partner of TMT Law Practice. Mr. Malhotra is a principal advisor on various policy think tanks and is regularly invited to speak on emerging issues and regulatory changes in the TMT space, including the recent Telecommunications Bill, Information Technology Rules, 2022, Data Protection Bill, Web 3.0 policy concerns, Telemedicine Guidelines, 2020. He is recognized as the “go-to” professional for issues across broadcasting, music, satellite communications, online gaming, and e-sports.
Online Gaming TDS Collections:
  • Under the new TDS regime for online gaming, approximately ?600 crore has been collected during the current fiscal year.
  • This marks a significant milestone in the taxation of online gaming, showing the government's commitment to fair and transparent revenue collection.
Cryptocurrency TDS Collections:
  • Since the taxation of cryptocurrency commenced on April 1, 2023, the government has collected around ?105 crore through TDS in the 2023-24 fiscal year.
  • This underscores the government's dedication to regulating and taxing this emerging and dynamic sector.
Taxation of Cryptocurrency:
  • Effective April 1, 2022, income from the transfer of virtual digital assets or cryptocurrencies is taxable at a rate of 30%.
  • This tax liability applies even if a taxpayer's total income falls below the threshold limit of ?2.50 lakh.
  • Additionally, deductions are limited to the cost of acquisition while calculating the taxable amount.
Taxpayer Obligations: It's important to note that individuals involved in online gaming and cryptocurrency trading are required to report their earnings from these sectors when filing their individual income tax returns. 
This development serves as a significant step in ensuring that these evolving industries contribute to the nation's economic growth and fiscal discipline.

 

Source: Press Release

ON THE DECK