Seven Online Gaming Firms, Three Dozen Players Get Income Tax Notices

by Swarajya Staff - Sep 29, 2022 03:19 PM +05:30 IST
Seven Online Gaming Firms, Three Dozen Players Get Income Tax NoticesThe Income Tax Department.

The Income Tax department has sent show cause notices to seven online gaming companies over possible tax evasion of about Rs 28,000 crore.

The department has also sought response from about 36 high-value players active on these platforms.

The notices have been sent out to the firms and players over the past 15 days, reports Economic Times.

The possible tax evasion in these cases could be about Rs 28,000 crore, the off icials told ET without revealing any names. The notices have been sent out over the past 15 days.

The income tax department had data of several high-value participants, including students and young IT professionals based in Bengaluru, Pune and Gurugram, with over Rs 50 crore in earnings each from gaming.

“We have the data… We are in the process of issuing notices to some of the players and companies ” Central board of Direct Taxes (CBDT) chairman Nitin Gupta was quoted in the ET report as saying.

Earlier in February, Income tax authorities had uncovered an online gaming portal with 8 million registered players and gross earnings of about Rs 58,000 crore over a three-year period.

“Preliminary estimates indicate tax evasion of about Rs 28,000 crore,” an official was quoted in the report as saying.

The official added that this may just be the tip of the iceberg and the actual evaded amount could be much higher.

Get Swarajya in your inbox everyday. Subscribe here.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Comments ↓
Get Swarajya in your inbox everyday. Subscribe here.
Advertisement

Latest Articles

    Artboard 4Created with Sketch.