Central Board of Direct Taxes (CBDT) Chairperson Nitin Gupta said on Friday that since the implementation of the new TDS system for online gaming and cryptocurrency trading, the government has collected tax of more than Rs 700 crore so far in the current financial year.
He informed that after the implementation of the new online gaming regime, approximately Rs 600 crore has been collected as tax (Tax Deducted at Source, TDS) during the current financial year. On the other hand, after the introduction of tax system on crypto on April 1 last year, Rs 105 crore has been collected as TDS during the financial year 2023-24.
"The Finance Act 2023 has added a new section 194BA to the Income Tax Act, 1961, with effect from April 1, 2023, which mandates online gaming platforms to deduct income tax (TDS) on net winnings in the user account of the individual," Gupta told reporters here. .Tax deductions are required at the time of withdrawal as well as at the end of the financial year."
Similarly, income from transfer of virtual digital assets or cryptocurrencies is taxable at the rate of 18 percent from April 1, 2023. Such income will be taxable even if the total income of the taxpayers is below the threshold limit of Rs 2.50 lakh and no deduction other than the cost of acquisition is allowed while computing the taxable amount.
The taxpayer will also have to show the earnings from these two sectors – online gaming and crypto trading – while filing his personal income tax return.