Government has come out with many measures to provide legal support and smoothen the environment for online gaming companies. The latest is the announcement that tax deducted at source TDS will be on the net winning of the user. Any authorized and certified online gaming company like sky exchange –id.info will not be subjected to tax deducted at source if the winning amount of a gamer is not more than 100 rupees.
The announcement was made by the central board of direct taxes other day. It reduces the compliance burden of online gaming companies as many gamers on skyexchange-id.info play with small amount of money. The step was essential in view of the large number of gamers preferring to play real money games that involve deposits in the virtual account of the gamer.
However , the central board of direct taxes also mentioned that this provision will not apply if online companies offers incentives , prizes , bonus or referral bonus , etc.There are many online companies in gaming industry that offer first time bonus, and cash prizes gamers who log in for the first time on their platform. Such incentives are normal in the gaming industry. Gamers, for example, with sky exchange login id, deposit some money in their accounts on the platform itself. They retain control over the account and can withdraw the money anytime they wish to do so without need for permission from the online gaming platform.
Now all that prizes, and incentive will be part of the net wining and will be deducted as per the TDS rules. The latest relief is in fact a greater booster to credibility of online gaming companies and platforms including skyexhange login id because it gives a legal protection to online gaming business and makes them part of the formal economy.
