game of skill income tax

In India, games of skill are considered legal and are distinguished from games of chance under the Public Gambling Act of 1867. This distinction is crucial for tax purposes, as income earned from games of skill is treated differently. For instance, platforms offering skill-based games like fantasy sports or rummy must comply with income tax regulations. Players who earn significant winnings may be subject to Tax Deducted at Source （TDS） under Section 194B of the Income Tax Act if the amount exceeds specified limits. Additionally, businesses operating these games need to maintain proper accounting and file returns to avoid penalties. Understanding these rules helps in navigating the tax implications effectively.