Divulge Earnings Under Black Money Law On Game
Individuals making use of e-wallets or virtual cards and generating income through online gaming or poker hosted by sites in international countries will be needed to disclose such income under the black money compliance window, which ends on September 30.
In its second set of 27 FAQs, the Central Board of Direct Taxes (CBDT) has said the e-wallet or virtual card is similar to a savings account and therefore “the assessment and declaration of an e-wallet account might be made as when it comes to a bank account”.
CBDT was reacting to a query whether individuals preserving e-wallet or a virtual card account online on a website hosted in an international country is required making a declaration under the brand-new black money law.
The e-wallet and virtual cards are commonly utilized to play online games and pokers.
In the case of concealed overseas checking account, a person is required to submit the details of credit given that the opening of the account and pay 60 percent tax and penalty to benefit from the 90-day compliance window ending September 30.
If the person is unable to get the statement of financial account given that its opening, the Frequently asked questions said he can make a declaration on the basis of the “best quote”.
Clarifying on issues raised by IT professionals, the FAQs said the non-residents who get pension for the period of work in an international country, will need to reveal the accretions in accounts from the date of becoming a resident in India.
The Black Money (Concealed International Earnings and Assets) and Imposition of Tax Act provides for tax and penalty of 120 per cent and a jail term of approximately 10 years for holding undisclosed international assets. It offers a 90-day compliance window to escape the severe punishment by stating the assets and paying 60 per cent tax and penalty.