TDS Policy for Online Rummy Games

TDS (Tax Deducted at Source) is deducted both during withdrawals and at the end of the financial year. A 30% TDS is applied on net winnings at the time of withdrawal and at year-end. Net winnings are calculated as:

• Net Winnings = Total Withdrawals – Total Deposits (within the financial year from April 1 to March 31).
• Total deposits refer to deposits made in the financial year, plus the opening balance for that year.
• Additionally, any net winnings that have already had TDS deducted from previous withdrawals will be reduced from the net winnings calculation for subsequent withdrawals.

Please note: The TDS Policy is based on the interpretation of the provisions in the Finance Act, 2023. The Company reserves the right to modify or change this TDS Policy in accordance with applicable laws at the time.

Examples of TDS Policy Application:

Scenario 1: You have a balance of ?10,000 as of March 25, 2023, and you withdraw it on April 5, 2023. Since this ?10,000 will be your opening balance as of April 1, 2023, it will be included in the deposit for TDS calculations. Since your net winnings are ?0, no TDS will be deducted.

Scenario 2: If your net winnings are zero or negative, no TDS applies. For example, if you begin the year with ?3,000 as of April 1, 2023, and deposit ?7,000 on April 2, 2023, when you withdraw ?5,000 on April 3, 2023, no TDS will apply since your net winnings are negative.

Scenario 3: When net winnings are positive, TDS will be charged at 30%. If your total deposits are ?10,000 (including an opening balance of ?3,000 and a deposit of ?7,000), and your total withdrawals are ?12,000, your net winnings would be ?2,000. TDS of 30% will be deducted from the ?2,000.

Scenario 4: If TDS has already been deducted on earlier withdrawals, no further TDS applies until your net winnings exceed the already taxed amount. For example, if TDS was deducted on ?6,000 of net winnings, further TDS will only apply if you exceed this amount in future withdrawals.

Scenario 5: If TDS was applied on your initial winnings but your net winnings later decrease, excess TDS can be claimed as a refund during your annual income tax filing.

Scenario 6: At the end of the financial year, TDS will be applied to any remaining balance in your wallet if it forms part of your net winnings or profits. This balance will carry forward as your opening balance for the next year.