Providing tax certainty / widening tax base

Taxation of winnings from online gaming

• ‘Net winnings’ from online games taxable @30% from FY 23-24

- Income computation mechanism to be prescribed

• Starting from 01 July 2023, WHT @30% to apply

- On withdrawal of winnings, or

- End of FY (whichever is earlier)

Sunset clause on Interest income

• Current TDS provisions under section 194LC/194LD provide for a concessional rate of withholding on interest payouts arising from government securities, long-term bonds including long-term infrastructure bonds and loan agreements executed prior to July 01, 2023

• No extension of sunset clause the said beneficial tax rates.

• Concessional rates to anyways apply for loans/bonds executed/issued upto July 01, 2023

Profits and gains from business & profession

• It is proposed to clarify that any benefit or perquisite arising from business or exercise of profession received in cash is also taxable in the hands of the recipient (applicable from FY 2023-24) – Supreme Court ruling principles may no longer apply

• Similarly, it is clarified that tax withholding (Section 194R) shall also apply on such cash benefits – In line with the recent Circulars