The Central Government has brought a new bill to control online gaming, which is named online gaming promotion and regulation Bill. This bill has been passed in the Lok Sabha. The aim of this law is to encourage online social games and e-sports, while the online gaming sector should be brought into a ruled range.
According to the bill, if a person plays an online money game, he will not be punished. But the companies that provide such sports, promote them, or they support them financially, action will be taken against them. In such a situation, if you have earned money through an online game so far, then it has become necessary to show that earnings in the income tax return (ITR). If you do not do this, action can be taken against you and you can get into legal trouble.
How to show online gaming income in ITR?
Earning from online gaming has to be shown under Income from Other sources. This is the same category in which income from lottery, gift or interest also comes. So if you have earned money from online game, then include it directly in this category. This shows the tax department to know your earnings correctly and does not violate the rules.
How much tax will be paid on online gaming?
Two major currents of the Income Tax Act apply to online gaming.
1- Section 115bbj: 30% tax will have to be paid on Net Winning of the last financial year. That is, the government will have to pay 30% of whatever amount you have won by playing the game. This tax is directly deducted and there is no discount or discount.
2- Section 194ba: TDS (tax deducted at source) on your gaming earnings will also be deducted at the rate of 30%. If the gaming company or platform has already deducted tax before your account, then you have to show this detail in your ITR through Form 26AS.
Keep this in mind while filling tax returns
If the TDS has already been cut before your gaming account, then you will get its record in Form 26AS. These details also come through Form 16A. It is necessary to fill these information in your ITR Schedule TDS section, so that tax is cleared and you do not pay tax again.
What to do if there is a loss in gaming?
If there is also a loss in gaming, it can be reduced by its gaming income. That is, if you have won some amount and have lost some amount, then the loss amount will have to be reduced from the total victory and tax. But it is necessary to mention this loss and income correctly in ITR.
What is the purpose of the government with the new bill?
New promotion and regulation of online gaming bill 2025 is not just to impose tax. Its purpose is also to control the increasing cases of online gaming. Under this bill, efforts will be made to stop problems like fake gaming, money laundering, fraud, and addiction. Along with this, online gaming will also be banned from promoting or advertising.