Section 115BB
This section provides that income by way of winnings from lotteries, crossword puzzles, races including horse races or card games and other games of any sort or from gambling or betting of any form would be taxed at a flat rate of 30% plus surcharge, if applicable, plus health and education cess@4%.
However, income by way of winnings from any online game would not be taxed under this section.
Section 115BBJ
This section provides that net winnings from any online game would be taxed at a flat rate of 30% plus surcharge, if applicable, plus health and education cess @4%.
(ii) Meaning of online games: A game that is offered on the internet and is accessible by a user through a computer resource including any telecommunication device.
(iii) No expenditure or allowance can be allowed from such income.
(iv) Deduction under Chapter VI-A is not allowable from such income.
(v) Adjustment of unexhausted basic exemption limit is also not permitted against such income.