Is income from online gaming taxable?

As per the Budget 2023 clarified the taxation aspect of gaming industry,

1. It is proposed to deduct TDS at 30% of the net winnings. The TDS threshold of ₹10,000 is not applicable.
2. Taxability shall be on net winnings at the time of withdrawal or at the end of the financial year, whichever is earlier.

Before the budget 2023, if a person had income from online games, card games, lottery, etc., then TDS at 30% would be deducted u/s 194B if the income exceeded ₹10,000.

A new section 115BBJ was added under the Income Tax Act in Budget 2023. According to this section, for income earned by winnings from online games, the tax shall be levied on the aggregate of net winnings from the online games at 30%.

Moreover, there has been an introduction of a new TDS section 194BA particularly for online games, which shall be applicable from 1 July 2023. According to this section, any person responsible for making a payment for winnings from any online games during the financial year, shall deduct tax on the net winnings at 30%.