TDS rules: Online gaming bonus, incentives taxable if withdrawn, says CBDT

The Central Board of Direct Taxes (CBDT) on Monday clarified that any deposit in the form of bonus or incentives credited in a user account will be considered net winnings, and subject to tax deduction, in case of withdrawal.

If these are used only for playing, then it’s not liable for tax deducted at source (TDS). Further, in case net winnings do not exceed Rs 100 a month, the applicable tax need not be deducted.

This also extends to cases where the balance in the user account at the time of tax deduction is not sufficient to discharge the tax deduction.