Top Stories
Gamers fret as budget tax eats into winnings | Hyderabad News
HYDERABAD: The new taxation rule on online gaming has come as a dampener for gamers in the state already bound by the ban on real money games (RMG) in Telangana.
The RMG developers from city are also an unhappy lot as the market of gamers beyond the state is also likely to shrink once the reality of the new tax biting into their small winnings sinks in.
The budget has brought in tax deducted at source (TDS) at 30% on all net winnings from online gaming either at the end of financial year or during withdrawal, and in the process done away with the earlier threshold of 10,000. With the winnings now being treated as income, even withdrawals as small as 500 will attract TDS.
The simplified taxation has, however, complicated the lives of small gamers. They can no longer hide their winnings via vouchers or coupons given by operators to help them split the winnings and keep it below the 10,000 threshold.
While many are unsure and tight-lipped about the latest TDS, a city-based gamer said, “It is not allowed in Telangana so I used to play when I visited other states. Sometimes, tournaments are also organised. But now we will end up paying more in tax.”
A developer working with an RMG company in Hyderabad said, “Though some people continue to play such games using technical shortcuts, it is largely banned in Telangana. Companies here are also concerned about how it will affect them.”
Owner of a city-based mobile gaming company said that the situation is now the same for play-to-win games, where exchange is in cryptocurrency (winnings paid in crypto), and regular money games where the exchange is in real currency (rupees). “Crypto winnings are already taxed at 30%,” said Saran Danam, a company that develops games for overseas players.
RMG developers said that their only hope lies in governments not imposing a blanket ban and instead recognising certain games of skills and not equating them with games of chance.
The RMG developers from city are also an unhappy lot as the market of gamers beyond the state is also likely to shrink once the reality of the new tax biting into their small winnings sinks in.
The budget has brought in tax deducted at source (TDS) at 30% on all net winnings from online gaming either at the end of financial year or during withdrawal, and in the process done away with the earlier threshold of 10,000. With the winnings now being treated as income, even withdrawals as small as 500 will attract TDS.
The simplified taxation has, however, complicated the lives of small gamers. They can no longer hide their winnings via vouchers or coupons given by operators to help them split the winnings and keep it below the 10,000 threshold.
While many are unsure and tight-lipped about the latest TDS, a city-based gamer said, “It is not allowed in Telangana so I used to play when I visited other states. Sometimes, tournaments are also organised. But now we will end up paying more in tax.”
A developer working with an RMG company in Hyderabad said, “Though some people continue to play such games using technical shortcuts, it is largely banned in Telangana. Companies here are also concerned about how it will affect them.”
Owner of a city-based mobile gaming company said that the situation is now the same for play-to-win games, where exchange is in cryptocurrency (winnings paid in crypto), and regular money games where the exchange is in real currency (rupees). “Crypto winnings are already taxed at 30%,” said Saran Danam, a company that develops games for overseas players.
RMG developers said that their only hope lies in governments not imposing a blanket ban and instead recognising certain games of skills and not equating them with games of chance.
Source link
