In this blog, we will be getting into all the details of the taxes that Indian Government is going to levy on the gaming market.
The Indian government has managed to get make sure that they recognise the gaming market, and the industry too. Hence, they have come up with taxes and some regulations to put the online gaming market in control. In today’s news blog, we will be looking into what exactly is the government going to do with the taxes and what are going to be the new rules in the market. There are quite a few things that people are disappointed about. Let us look at all the regulations and everything in detail!
The first thing that might break many people’s hearts and also that their career now falls under taxable profession. Before whatever they earned would be coming from Youtube or Twitch and usually, it was not really taxed that heavily by the government, for streaming was not a recognisable way of income. However, with all the achievements that the Esports market and the gaming market have been getting, the government feels like this is the appropriate time to actually recognise streaming and gaming as a legitimate way of warning. However, they have decided that they will be will not charge any tax, if the income of the streamer is below 2.5 lakh INR. Their profession has been included under the category of “Business & Profession” Category of taxes. Therefore, if you want to know more about all the details of the taxes that you got to pay, make sure that you go through the following category.
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There are multiple online gaming platforms that will actually give you real money if you manage to win them every time. Some popular examples are Dream 11, The Money Drop, Ludo Empire, etc. The winning from these games was usually not taxed, and people felt that it was completely okay to keep on investing money and get massive profits from it. However, once all of these companies became immensely popular and people started to take undue advantage of it. They decided that there needs to be certain rules and regulations for these online games. Therefore, they have decided that they are going to tax the winnings at 31.2%. This will be the flat rate, and no matter how much you are winning, you will have to pay this much tax.
Another massive change that is going to come under the online games is that the companies would also provide massive bonuses for the joining and the referral. All of these bonuses are going to be taxed as well. Hence, if you are going to earn a massive bonus make sure that a good amount of it will be given away to the government.
Now if you are wondering about the winnings in online tournaments then you are not likely to get much taxed. The government is still torn between what they would exactly do to tax the winnings of the tournaments. However, they are going to tax the Esports organisers or the hosts of the tournaments if the sponsorship merchandise exceeds ₹50,000. Hence, now the whole online tournament hosts have to be quite calculative in calling in sponsors and their prize pool too.
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We hope the insights provided were helpful to you in your endeavor to become the next Esports star! For such amazing content, stay tuned and you should download the Tournafest app from Google Play or the App Store to compete in Esports Tournaments and Scrims for games such as BGMI, Free Fire MAX, and Call of Duty and win exciting prizes! You may also organize tournaments and fetch unmatched perks.