TDS Policy
TDS Rules
As per the amendment in Section 194BA of the Income Tax Act proposed in the Budget Session of 2023, all online gaming intermediaries must deduct a tax of 30% on the users' net winnings made by playing real money online games
- Net winnings = Total withdrawals - (Total deposits in a financial year + Opening balance)
- Opening balance = Deposits of the previous financial year + withdrawable winnings of the previous financial year which did not suffer TDS
Guidelines:
- 30% TDS will be applicable only to your net winnings and not your deposits
- The TDS will be deducted at the time of withdrawal & at the end of the financial year
How is TDS calculated?
If your net winnings are positive (withdrawals are more than deposits) then a 30% TDS will be applicable to your withdrawal. A financial year is counted from 1st April to 31st March
Example 1:
For example it is 1st April and you have not made any deposits yet. Your opening balance is ?5000 and now you want to withdraw ?3000
| Opening balance | ?5000 |
| Total deposits of current FY | ?0 |
| Total withdrawals of current FY | ?3000 |
| Net winnings | -?2000 (?3000 - ?5000) |
| TDS @30% on net winnings | ?0 |
Example 2:
In case you deposit ?2000 in the current FY and your opening balance is 7000. You have previously withdrawn ?6000 and now you wish to withdraw ?5000
| Opening balance | ?7000 |
| Total deposits of current FY | ?2000 |
| Total withdrawals of current FY | ?11000 |
| Net winnings | ?2000 |
| TDS @30% on net winnings | ?600 |
Example 3:
| Total Deposits | ?1000 |
| Opening Balance | ?300 |
| Total Withdrawals | ?1600 (1st withdrawal) |
| Net winnings | ?300 |
| TDS @30% | ?90 |
If you plan to make a withdrawal after the above transaction, TDS will be applicable only if the withdrawal amount exceeds your total deposits
FAQs
Once the TDS has been debited, we will provide the TDS certificate over the next 45 - 90 days of the following quarter. Please note that this duration might change as per the notification from the Government.
Kindly contact [email protected] to get your certificate.
Please contact [email protected] to get your certificate.
Your deposit and withdrawal ledger will become zero at 07:00 hours on 1st April of every financial year. Your withdrawable balance which did not suffer TDS in FY 2023-24 will be carried forward to FY 2024-25 as opening balance.