Skip to main content

Latest News | Computer notices are sent to winners of online games for partial payment of tax: Head of CBDT

By September 27, 2022Online games

New Delhi, Sep 27 (PTI) With a prize money of Rs 58,000 crore won in the past three years, the Income Tax Department has started issuing notices to people who have played and won games online, CBDT chief Nitin Gupta said on Tuesday.

The department has begun alerting winners on the Tax Compliance Dashboard if there is a mismatch between income and tax payments.

Read also | IBPS Clerk Prelims Exam Result 2022 Posted on; Know the steps to check CRP Clerk XII scores.

“We have put together a stock in this sector (online gaming) and determined that earnings of Rs 58,000 crore were there over the last 3 years. The data is with us. We are in the process of issuing notices,” Gupta said.

He said notices were posted on the tax compliance portal and winners were pushed to pay taxes due.

Read also | Young Actors Retreat: 5 Things We Learned About Kim Yoo Jung, Park Seo Joon, Hwang In Youp, And More From The Korean Variety Show

“They are supposed to voluntarily comply with paying taxes,” Gupta said.

He also said the department takes enforcement action whenever it finds data is supported by evidence, and in such cases, notices are issued.

The IT department’s action comes on the heels of the GST’s intelligence wing issuing a show cause notice earlier this month to a Bengaluru-based online gaming portal GamesKraft Technologies Pvt Ltd demanding 21,000 crore rupees in taxes, interest and penalties.

GamesKraft has approached the Karnataka High Court against the SCN issued to it by the GST authorities.

The tax was calculated based on the 28% Goods and Services Tax (GST) on online gaming.

Currently, 18% GST is levied on online games of skill, while 28% GST is levied on online games of chance.

(This is an unedited and auto-generated story from syndicated newsfeed, LatestLY staff may not have edited or edited the body of the content)