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Taxation of Convertible Gaming Currency

02 February 2022

I invested in Virtual Game currency/ CSGO skins in the year 2019 let's keep the sum total to be 2 Lakh Rupees INR for example and now that the price of those has raked up to let's say for example 10-12 Lakhs and now I sell them to a games skin dealer website and turn them again to real cash but now as mentioned before the total amount is 12 lakhs

under what category and how would I be filing this large sum of money mainly profits and how much tax would I be paying according to the budget 2022?

Non CA here Thanks in Advance for help :)

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2 Replies

Dharmendra Kumar (19 Points)
Replied 03 February 2022

Tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting of any form or nature whatsoever.

115BB. Where the total income of an assessee includes any income by way of winnings from any lottery or crossword puzzle or race including horse race [not being income from the activity of owning and maintaining race horses] or card game and other game of any sort or from gambling or betting of any form or nature whatsoever, the income-tax payable shall be the aggregate of—

[i] the amount of income-tax calculated on income by way of winnings from such lottery or crossword puzzle or race including horse race or card game and other game of any sort or from gambling or betting of any form or nature whatsoever, at the rate of thirty per cent; and

[ii] the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause [i].

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Gaurav Khanna (3 Points)
Replied 11 February 2022

Respected Sir,

These aren't winnings from bettings or other games as such. A few years back I spent money to buy these and since then the price has risen like that of the stocks in stock market and now I want to sell them since these are some sort of NFT's