Budget 2023: Online gaming startups back separate treatment of gambling, online games

Notwithstanding the imposition of 30% tax on net winnings and removal of the Rs 10,000-threshold for tax deducted at source (TDS) on online gaming, startups in the sector have backed the Union Budget proposals given that the government has introduced a demarcation between gambling or betting, and online games.

The Budget 2023-24 proposed introduction of two new provisions for TDS on online gaming – levy of 30% on payment of net winnings in a financial year and removal of the current Rs 10,000 threshold for the levy of TDS.