Online gambling companies hit by tax evasion bill of over Rs 28,000Cr
The Income Tax (IT) Department has issued show cause notices to seven online gambling portals as well as about three dozen top players on those platforms. The government suspects these entities of failing to pay taxes of up to Rs 28,000 crore.
As reported by Economic period, these notices were sent within the last 15 days. The people targeted are those whose income exceeds Rs 50 crore.
“We have the data… We are in the process of issuing advisories to certain actors and companies,” Central Board of Direct Taxation (CBDT) chairman Nitin Gupta told ET, without providing further details.
This report has not been independently verified by Your story.
This news comes after indications that the IT department and the CBDT (Central Commission for Direct Taxes) have been following up on potential cases of tax evasion. Earlier this year, it was discovered that an online gambling portal with 8 million registered players had gross revenues of around Rs 58,000 crore over a three-year period.
The CBDT is also currently working to demystify the potential ambiguity of online gambling taxation laws. At present, gross winnings are subject to a flat tax of 30%, with gaming portals required to deduct 0.1% of all winnings above Rs. 10,000 as withholding tax.
A source said HEY that the portals did not strictly enforce this withholding tax requirement.