Tax with Ria
KF Expert
STOP THIS NOW! 
To all the readers, here's a quick reminder to everyone .
Nowadays, everyone will see ads of Dream 11, Rummy Circle, Pokerbaazi and other online gaming platforms.
They lure young minds with hefty prize money or addictive games to play on daily basis by giving them joining bonus or referal bonus which is withdrawable sometimes.
But to all of them who are playing on such online gaming platforms, any profit(net winnings) earned is fully taxable @ 30% under section 115 BBH under income tax and GST is levied on net winnings @ 28% if your profit or net winning is more than 1 rupee.
However TDS is also deducted under section 194BA on net winning, if more than 100 rupees, by these online platforms @ 30%.
Example- If you've earned 1000 rupees as net winnings, then
Income tax -300
GST- 280
HEC @ 4%- 24
*NET WINNINGS= (A+D)-(B+C)
A-Aggregate amount withdrawn from the user account during the financial year;
B-Aggregate amount of non-taxable deposit made in the user account by the assessee during the financial year
C-Opening balance of the user account at the beginning of the financial year (Excluding Incentive/Bonus Which is Non-Withdrawable)
D-Closing balance of the user account at the end of the financial year (Excluding Incentive/Bonus Which is Non-Withdrawable).
Net profit received is 396 or 400 rupees approx.
Now this profit earning platform or earning money instantly is under severe government regulations so please never recommend anyone to get registered on these online gaming platforms neither get lured by heavy advertisment starring your favourite cricketers or bollywood celebrities.
