Section 194BA(2) — the law in short
What the courts have decided on section 194BA(2), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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CBDT Circular No. 5 of 2023 (online gaming TDS)
CBDT Circulars & InstructionsCuts both ways
The platform says it need not deduct on every small withdrawal, and that my bonus counts as a deposit. Where does that come from?
It comes from this circular, issued under s.194BA(3) on the same day Rule 133 was notified. It allows the deductor to skip deduction on a withdrawal where the net winnings in it do not exceed Rs 100 in a month, provided the tax is picked up later and the deductor stands behind it; it treats a bonus, referral bonus or incentive as a taxable deposit, unless it is credited only for playing and cannot be withdrawn; it requires every user account of the same user on a platform to be aggregated; and it fixes how winnings in kind are valued, excluding GST.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.