India is going to be taxing incentives offered by online gaming firms to their customers – considering bonuses, referrals and other incentives as part of winnings.

The change was announced by the government on Monday, with reports noting that companies will be required to deduct the taxes if players claim their net winnings – including such incentives.

If the bonuses are not claimed or withdrawn, the tax will not be applied on the figures.

Authorities will calculate the net winnings by subtracting the total amount withdrawn from deposits made into the account, as well as the opening balance at the beginning of the year.

Current taxation rates for online gaming platforms on net winnings are 30 percent.

The companies will not be required to deduct taxes on the winnings withdrawn by players if the amount is less than $1.22 per month.