Your victory in online gaming, government will make profit | Fantasy Gaming | IPL 2023- Watch Video

Your profits will suffer greatly starting today if you make money from other gaming websites like Dream11, Rummy Circle, or Mycircle11. The government has included a clause in this budget (Budget 2023) stating that starting on April 1, 30 percent TDS would be taken out of every online gambling income. Formerly, the same TDS was only applicable to prizes exceeding Rs 10,000. TDS will, however, now be subtracted from any gaming winnings. 

The government's goal in doing this is to prevent tax evasion. But, it will be quite costly for individuals who make a living playing online games. In the past, if a player entered a game for Rs. 1000 and won Rs. 12,000, his TDS would be 30% of that amount. Hence, on his winnings of Rs 11,000, he had to pay TDS of Rs 3,300.

Now what if someone enters the game by paying an entry fee of Rs 1000 and wins Rs 8000, then he will have to pay TDS on Rs 7,000. Entry fee is not being considered as part of the winnings. That's why the government will exclude the entry fee from the calculation. If you win Rs 7000 then you will have to pay Rs 2100 as TDS.