The beneficiary is required to show this amount when filing Income Tax Return and non-reporting can lead to penalty of upto 200 per cent of the tax amount.
Many new-age gaming start-ups have been launched in the last few years and at present 18% tax is being levied on commissions collected by these online platforms for games.
The ministry, which is a nodal agency for online gaming, met top industry leaders of the industry to know their view on draft online gaming rules.
Last year, India became the largest consumer of mobile games in the world, recording over 15 billion downloads, as per a report by Lumikai, a gaming-focused venture capital fund.
Many educators urged the Minister to ensure that the proposed self regulatory body "operates at an arm's length from the industry", and pushed for framing of 'objective criteria'.
The government can notify any game, irrespective of its nature, as an online game if it doesn’t fulfill its mandated criteria, according to the proposed online gaming regulation.
The final draft is expected in February following consultation from all stakeholders.
In a written reply to the Lok Sabha, Rajeev Chandrasekhar said that the government is aware of the possible risks and challenges associated with online games that have such information.
The GoM, in its last meeting in November, had agreed on a 28 per cent GST on online gaming casinos and horse racing.
Finance Minister Nirmala Sitharaman said the Council could decide on only 8 out of the 15 agenda items due to paucity of time, but added that no new taxes have been brought in.
The agenda for the Council meet so far did not include a discussion on online gaming. Now that the report has been submitted, it is likely that the Council may take it up for consideration.
There is a lot of confusion whether GST should be levied on the full face value or gross gaming revenue. The GST Council is expected to take a call on this on Saturday.
The ED is also investigating several cases related to Cyber and Crypto assets frauds wherein online gaming etc. have been used for siphoning the proceeds.
This comes as the state awaits the Governor’s assent to the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022.
The governor had immediately approved the ordinance, promulgated by the state government on October 1, recalled the editorial.
Inclusion of rummy as game of chance violates SC judgment, says e-gaming federation
The minister said the governor had raised the three queries based on the Madras HC order that struck down the previous law banning online gambling.
Currently, online gaming attracts 18 per cent GST. The tax is levied on gross gaming revenue, which is the fees charged by online gaming portals.
The accused Aamir Khan launched a mobile gaming application namely E-Nuggets, which was designed for the purpose of defrauding the public, ED said.
For such fans, Nodwin gaming is hosting a DreamHack- World Digital Festival where people can visit and experience the world of gaming for three days.