The income tax department has issued show cause notices to seven online gaming firms, as well as approximately three dozen high-value players active on those gaming platforms, as the gaming sector remains under regulatory vigil.
According to ET, the IT department has issued these notices over the last 15 days. In all of these cases, the potential tax evasion could amount to INR 28,000 Cr. However, according to an official quoted in the report, this could be just the tip of the iceberg, with the actual evaded amount exceeding INR 28,000 Cr and possibly much higher. The IT department has also gathered information on high-value participants with earnings exceeding INR 50 crore. Unsurprisingly, some of the participants are students and young IT professionals from Bengaluru, Pune, and Gurugram.
