The Private Office Podcast

TE5 - Taxation of Online Gaming | Part 1

Join J.B. Mohapatra (former CBDT Chairman) and Adhitya Srinivasan as they analyse the new Income Tax regime for online gaming and explain why online gaming has been decoupled from other games, what the Income Tax Department is trying to capture and how the new tax framework interacts with other laws and regulations. ------------------------------------------------------------ Useful Links: Illustration: https://online.flippingbook.com/view/561985664/ Income Tax Act, 1961: https://incometaxindia.gov.in/Pages/acts/income-tax-act.aspx Rule 133 of the Income Tax Rules, 1962: https://incometaxindia.gov.in/communications/notification/notification-28-2023.pdf CBDT Guidelines dated 22.05.2023: https://incometaxindia.gov.in/communications/circular/circular-5-2023.pdf Episode 2 – ‘20% TCS on overseas credit card transactions’: https://open.spotify.com/episode/5ThAvLk9YaComDw2Zm96CN?si=qkH4Z3s8Qg-nXTiArPNl4Q #tax #TDS #onlinegaming ------------------------------------------------------------ Time Stamps: (00:00) Intro (00:52) Online real-money games (01:21) ‘Winnings’ from online games (04:48) Risk of dual definitions (08:08) History of taxation of winnings (12:02) Sections 115BB and 115BBJ (15:11) Structure of Chapter XII (18:41) Discussion on defined terms under section 115BBJ (23:23) How does TDS work? (24:25) Old Position vs. New Position (30:05) Rationale for non-obstante language (33:25) Taxation of ‘professional’ gamers? (34:28) Tax Leakage (36:59) TDS = ‘Rate in Force’ = 30% / All Tax Deducted at Source (40:37) Two TDS Triggers (47:35) OGI’s obligation to ensure TDS is paid (50:09) Move to cash-only winnings? (50:37) Structure of Rule 133 (54:33) How do the formulas work? (56:03) Taxable and non-taxable deposits (57:32) When do taxable deposits get taxed? (59:19) Pay-outs outside the user account (01:00:33) Rule 133 forecast (01:03:37) Guidelines | Circulars | Notifications (01:06:41) Treatment of multiple user accounts and platforms (01:10:04) One OGI, multiple TANs? (01:11:02) Treatment of borrowed funds used in online gaming (01:14:11) ₹100 Net Winnings Threshold (01:16:17) Treatment of coupons issued against user account balance (01:17:55) Valuation of ‘in-kind’ winnings (01:21:14) GST excluded from valuation of winnings (01:22:13) Rollout of Rule 133 after regime became effective (01:23:54) ‘Skill vs. Chance’ | Income Tax Department has taken a stand ------------------------------------------------------------ Listen to The Private Office Podcast on: Spotify: https://open.spotify.com/show/6wYtvNDHneJcP0EXnn7Kdr?si=66accd71d265495a Apple Podcasts: https://podcasts.apple.com/in/podcast/the-private-office-podcast/id1694327638 Audible: https://www.audible.in/pd/B0C9DV85ZP?source_code=ASSORAP0511160006&share_location=podcast_show_detail YouTube: https://www.youtube.com/@theprivateofficepodcast ------------------------------------------------------------ Interact with The Private Office: Inquiries: info@tpoadvisory.com Twitter: https://twitter.com/tpoadvisory?s=11&t=QEQKmii768qZcM8CzXkuDA Instagram: https://instagram.com/tpoadvisory?igshid=YmM0MjE2YWMzOA== LinkedIn: https://www.linkedin.com/company/the-private-office-tpo/

TE4 - UPDATE: Partial rollback of TCS on LRS transactions

In this update episode, Adhitya Srinivasan speaks with J.B. Mohapatra, former CBDT Chairman, on the recent clarifications that have been released by the Government of India on the Tax Collection at Source (TCS) on transactions under the Liberalised Remittance Scheme (LRS). ------------------------------------------------------------ Useful Links: Episode 2 – ‘20% TCS on overseas credit card transactions’: https://open.spotify.com/episode/5ThAvLk9YaComDw2Zm96CN?si=qkH4Z3s8Qg-nXTiArPNl4Q MoF Press Release dated 28 June 2023: https://pib.gov.in/PressReleasePage.aspx?PRID=1936105 CBDT Circular dated 30 June 2023: https://incometaxindia.gov.in/communications/circular/circular-10-2023.pdf Income Tax Act, 1961: https://incometaxindia.gov.in/Pages/acts/income-tax-act.aspx #tax #TCS #LRS #CBDT #creditcard ------------------------------------------------------------ Time Stamps: (00:00) Intro (00:54) Recap (03:14) New Clarification (05:04) Summary (07:21) Legislative Amendment (08:56) Monsoon Session Amendment (09:27) Rationale behind the Clarification ------------------------------------------------------------ Listen to The Private Office Podcast on: Spotify: https://open.spotify.com/show/6wYtvNDHneJcP0EXnn7Kdr?si=66accd71d265495a Apple Podcasts: https://podcasts.apple.com/in/podcast/the-private-office-podcast/id1694327638 Audible: https://www.audible.in/pd/B0C9DV85ZP?source_code=ASSORAP0511160006&share_location=podcast_show_detail YouTube: https://www.youtube.com/@theprivateofficepodcast ------------------------------------------------------------ Interact with The Private Office: Inquiries: info@tpoadvisory.com Twitter: https://twitter.com/tpoadvisory?s=11&t=QEQKmii768qZcM8CzXkuDA Instagram: https://instagram.com/tpoadvisory?igshid=YmM0MjE2YWMzOA== LinkedIn: https://www.linkedin.com/company/the-private-office-tpo/

TE3 - Withdrawal of ₹2,000 bank notes: Demo 2.0?

In this episode of the Tax Experience Series, Adhitya Srinivasan and Mr J.B. Mohapatra, former Chairman of the CBDT, examine the RBI’s decision to withdraw ₹2,000 bank notes from circulation and review the various anti-cash provisions in the Income Tax Act, 1961. Join us as we discover the motivations and implications of the RBI decision as well as the measures adopted under the Income Tax Act to discourage cash transactions. (00:00) Intro (01:04) How is cash regulated? (01:49) Black & White Money (04:29) How does the cash come into circulation in the economy? (06:54) Unrecorded economy, unreported economy and illegal economy (10:50) Hoarding and transacting in cash (12:51) Financial Privacy & Anonymity (21:42) How do multiple agencies collaborate on analysing financial data (24:08) RBI withdraws ₹2,000 notes from circulation (25:56) Contrast between 2016 and 2023 (26:41) Why withdraw ₹2,000 bank notes if they remain legal tender? (36:10) Low percentage of ₹2,000 bank notes in circulation (38:27) Demo 2016 led to more financial data collection (43:07) Expected benefits from 2023 withdrawal of ₹2,000 notes (43:55) Does the Income Tax Act discourage cash transactions? (47:26) Cash transactions: Shut down vs. Monitor (49:51) Anti-cash provisions in the Income Tax Act (56:16) Prohibition on cash receipts of >= ₹2,00,000 per day (59:16) Cash in Politics and Elections (1:04:51) ‘Your account should not be the storehouse of someone else’s money’ (1:12:23) TDS on bank withdrawals (1:15:55) Incentivising businesses to go cashless (1:20:05) Assessing the impact of anti-cash provisions (1:21:39) Final thoughts

TE2 - 20% TCS on overseas credit card transactions

In this episode of the Tax Experience Series, Adhitya Srinivasan and Mr J.B. Mohapatra, former Chairman of the CBDT, explain how TCS works and explore the new TCS rule on overseas credit card transactions. Join us for an insightful discussion with one of the foremost tax experts in the country. Timestamps: (00:00) Intro (01:08) What is TCS? (06:18) Difference between TCS and TDS (09:40) How does TCS work? (11:47) Liberalised Remittance Scheme - LRS (15:56) Changes in relation to Credit Card Transactions (18:55) Tax Impact (21:54) Why did the Government change the law? (25:45) Form A2 (27:53) ‘LRS is a drain on government resources’ (29:55) Mapping Foreign Remittances (30:56) TCS on LRS is not an old idea (32:17) Inequity between domestic and foreign payouts (34:45) TCS Rate Change from 5% to 20% (38:57) How does the LRS work in practice? (43:02) TCS on CC transactions for shopping overseas (45:25) How will the clarification be given legal effect? (51:33) TCS on purchases from a foreign online marketplace (53:08) TCS on subscriptions for apps and software (54:07) TCS on remittances from parent to child studying abroad (54:52) TCS on remittances from a parent to a child working abroad (55:42) Tax on credit card rewards/cash back? (58:25) Will the new TCS rule herald a return to cash? (1:00:35) Suggestions (1:03:15) Tax Credits for TCS | Managing Cash Flows (1:05:30) Is TCS applicable on GST?

TE1 - A Review of the Tax Landscape in India

In this debut episode of "The Private Office Podcast: The Tax Experience." we delve into the tax landscape in India. Join host Adhitya Srinivasan and esteemed guest Mr. J.B Mohapatra, former Chairman of the Central Board of Direct Taxes (CBDT), as they explore the various facets of India's tax system. From understanding different types of taxes to uncovering hidden charges, revenue sources, and taxpayer demographics, this episode offers a comprehensive overview. Discover the mechanics behind tax rates, surcharges, and add-ons, and gain insights into the historical shifts and significant impacts on the economy. Whether you're a tax enthusiast or simply seeking a better understanding of the tax landscape, this episode is a must-listen. Tune in and gain valuable knowledge to navigate the world of taxation in India. Join us on "The Private Office Podcast" and visit our website for more episodes and resources: https://tpoadvisory.com/ For inquiries and feedback, please email us at info@tpoadvisory.com. Don't forget to subscribe and leave us a 5-star rating if you enjoy our podcast. Timestamps: (00:00) Intro (00:46) What is a tax? (01:16) Various kinds of taxes in India (06:36) ‘Hidden Taxes’ and the effect of inflation (13:03) Trends of revenue - what do they tell us? (19:28) How is public expenditure funded? (22:55) What are non-tax revenues? (25:32) The Fiscal Responsibility and Budget Management Act, 2003 (28:21) Auction of public assets and the National Monetisation Pipeline (35:25) Is the Government of India becoming smaller? (36:12) Taxpayer statistics (40:13) Why do we have so few individual taxpayers in India? (44:24) Geographical spread of tax revenue in India (47:42) Taxing powers of the Centre and the States (51:31) Can States fund their own expenditures? (55:53) The Politics of Taxation (1:01:23) Difference between Effective Tax Rate and Marginal Tax Rate (1:03:50) Did India really have a marginal tax rate of nearly 100%? (1:06:39) Surcharge and Cess (1:12:54) Where can you find info about tax rates, surcharge and cess? (1:15:14) Examples of tax policy changes that have had a cascading effect on the economy (1:15:42) Zero Tax Companies (1:16:52) Sections 115BA and 115BAA (1:18:34) Updated returns (1:20:22) Further reading