Join J.B. Mohapatra (former CBDT Chairman) and Adhitya Srinivasan as they analyse the new Income Tax regime for online gaming and explain why online gaming has been decoupled from other games, what the Income Tax Department is trying to capture and how the new tax framework interacts with other laws and regulations.

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Useful Links:

Illustration: https://online.flippingbook.com/view/561985664/

Income Tax Act, 1961: https://incometaxindia.gov.in/Pages/acts/income-tax-act.aspx

Rule 133 of the Income Tax Rules, 1962: https://incometaxindia.gov.in/communications/notification/notification-28-2023.pdf

CBDT Guidelines dated 22.05.2023: https://incometaxindia.gov.in/communications/circular/circular-5-2023.pdf

Episode 2 – ‘20% TCS on overseas credit card transactions’: https://open.spotify.com/episode/5ThAvLk9YaComDw2Zm96CN?si=qkH4Z3s8Qg-nXTiArPNl4Q

#tax #TDS #onlinegaming

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Time Stamps:

(00:00) Intro

(00:52) Online real-money games

(01:21) ‘Winnings’ from online games

(04:48) Risk of dual definitions

(08:08) History of taxation of winnings

(12:02) Sections 115BB and 115BBJ

(15:11) Structure of Chapter XII

(18:41) Discussion on defined terms under section 115BBJ

(23:23) How does TDS work?

(24:25) Old Position vs. New Position

(30:05) Rationale for non-obstante language

(33:25) Taxation of ‘professional’ gamers?

(34:28) Tax Leakage

(36:59) TDS = ‘Rate in Force’ = 30% / All Tax Deducted at Source

(40:37) Two TDS Triggers

(47:35) OGI’s obligation to ensure TDS is paid

(50:09) Move to cash-only winnings?

(50:37) Structure of Rule 133

(54:33) How do the formulas work?

(56:03) Taxable and non-taxable deposits

(57:32) When do taxable deposits get taxed?

(59:19) Pay-outs outside the user account

(01:00:33) Rule 133 forecast

(01:03:37) Guidelines | Circulars | Notifications

(01:06:41) Treatment of multiple user accounts and platforms

(01:10:04) One OGI, multiple TANs?

(01:11:02) Treatment of borrowed funds used in online gaming

(01:14:11) ₹100 Net Winnings Threshold

(01:16:17) Treatment of coupons issued against user account balance

(01:17:55) Valuation of ‘in-kind’ winnings

(01:21:14) GST excluded from valuation of winnings

(01:22:13) Rollout of Rule 133 after regime became effective

(01:23:54) ‘Skill vs. Chance’ | Income Tax Department has taken a stand

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Listen to The Private Office Podcast on:

Spotify: https://open.spotify.com/show/6wYtvNDHneJcP0EXnn7Kdr?si=66accd71d265495a

Apple Podcasts: https://podcasts.apple.com/in/podcast/the-private-office-podcast/id1694327638

Audible: https://www.audible.in/pd/B0C9DV85ZP?source_code=ASSORAP0511160006&share_location=podcast_show_detail

YouTube: https://www.youtube.com/@theprivateofficepodcast

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Interact with The Private Office:

Inquiries: info@tpoadvisory.com

Twitter: https://twitter.com/tpoadvisory?s=11&t=QEQKmii768qZcM8CzXkuDA

Instagram: https://instagram.com/tpoadvisory?igshid=YmM0MjE2YWMzOA==

LinkedIn: https://www.linkedin.com/company/the-private-office-tpo/

In this update episode, Adhitya Srinivasan speaks with J.B. Mohapatra, former CBDT Chairman, on the recent clarifications that have been released by the Government of India on the Tax Collection at Source (TCS) on transactions under the Liberalised Remittance Scheme (LRS).

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Useful Links:

Episode 2 – ‘20% TCS on overseas credit card transactions’: https://open.spotify.com/episode/5ThAvLk9YaComDw2Zm96CN?si=qkH4Z3s8Qg-nXTiArPNl4Q

MoF Press Release dated 28 June 2023: https://pib.gov.in/PressReleasePage.aspx?PRID=1936105

CBDT Circular dated 30 June 2023: https://incometaxindia.gov.in/communications/circular/circular-10-2023.pdf

Income Tax Act, 1961: https://incometaxindia.gov.in/Pages/acts/income-tax-act.aspx

#tax #TCS #LRS #CBDT #creditcard

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Time Stamps:

(00:00) Intro

(00:54) Recap

(03:14) New Clarification

(05:04) Summary

(07:21) Legislative Amendment

(08:56) Monsoon Session Amendment

(09:27) Rationale behind the Clarification

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Listen to The Private Office Podcast on:

Spotify: https://open.spotify.com/show/6wYtvNDHneJcP0EXnn7Kdr?si=66accd71d265495a

Apple Podcasts: https://podcasts.apple.com/in/podcast/the-private-office-podcast/id1694327638

Audible: https://www.audible.in/pd/B0C9DV85ZP?source_code=ASSORAP0511160006&share_location=podcast_show_detail

YouTube: https://www.youtube.com/@theprivateofficepodcast

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Interact with The Private Office:

Inquiries: info@tpoadvisory.com

Twitter: https://twitter.com/tpoadvisory?s=11&t=QEQKmii768qZcM8CzXkuDA

Instagram: https://instagram.com/tpoadvisory?igshid=YmM0MjE2YWMzOA==

LinkedIn: https://www.linkedin.com/company/the-private-office-tpo/