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Times seem to boding well for poker players in India, with hopes of an improved Tax Deduction at Source (TDS) policy and tax benefits in the future. A number of online gaming operators have approached Arun Jaitley, Union Finance Minister, asking him to increase the TDS threshold from the current ₹10,000. The move was made in lieu of the recommendations by the Easwar Report, which suggests simplification of tax procedures and increasing of TDS caps. The report has suggested that TDS be raised to ₹15,000, though PK Jain, Head of Operations, Sachar Gaming Pvt Ltd has stated that it should be as high as ₹50,000 and tax be reduced to 10-15% from the existing 30%, and even mentioned this in the plea to the Finance Minister.
Jain remarked that, “We have made a representation to the Finance Ministry and petitioned Arun Jaitley to increase the TDS threshold for winnings from games of skill, which are unfairly bracketed in the same category as winnings from lotteries, gambling, casinos etc.”
He further added that games of skill like poker and rummy had already been admitted by several courts as not tantamount to gambling and hence, the current high rate of 30% tax on winnings, without any setoffs was not in the interests of the industry.
Jay Sayta of Glaws.in and an expert on legal issues affecting gaming in India agreed with Jain’s views and said that the Indian TDS rates were the highest in the world, with most other countries having no such levy as tax on earnings. He went on to point out that, “Jaitley should consider including a higher TDS threshold and lower income tax rate for winnings from games of skill in the upcoming budget to bring it in sync with global standards and changing times.”
This latest development is one of a series that seem to be pointing towards better times for the gaming industry in India.