Several companies of the booming online skill games industry have made a representation to the Union Finance Minister Arun Jaitley to consider relaxing Tax Deducted at Source (TDS) norms applicable to the games of skill websites in light of the Easwar committee report on simplification of income tax procedures and hiking thresholds for TDS deductions.

The draft of the Easwar committee report has advocated increasing the TDS threshold before for withholding income tax by companies to Rs. 15,000/- from the current threshold of Rs. 10,000/-

PK Jain, head of operations of Sachar Gaming Pvt. Ltd.,  a company which offers online rummy and poker through its website khelplay.com said, “We have made a representation to the Finance Ministry and petitioned Mr. 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.

Skill games like poker and rummy do not amount to gambling and there are several judgments of courts to support it. An unreasonably low threshold for deducting TDS and high income tax of 30% on winnings, without allowing any deductions or setoffs does not bode well for the industry.”