- Tax on Net Winnings at the time of the withdrawal that are deducted are paid to the income tax department for the credit of the player. Players can file their returns with the income tax department and claim refunds subject to the Player’s overall tax liability. Games24x7 will be issuing the tax deduction certificates showing the tax deducted for the player. However, Games24x7 will not be able to refund the excess TDS from our end directly to any Player.
FAQ - Tax deducted at Source- TDS
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What is ‘Net Winnings’?
Net Winnings is the difference between the total amount withdrawn and the total amount deposited in a financial year. Example -
Total Deposit Total Withdrawal ₹ 2000 ₹ 3000 Here, Net Winnings = Total Withdrawal - Total Deposit
= ₹ 3000 - ₹ 2000
Net Winnings = ₹ 1000
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What is TDS?
TDS stands for 'Tax Deducted at Source' which we are legally obliged to deduct tax at source (“TDS”) at the time of withdrawal or the end of the Financial Year.
As per the Finance Bill passed by the Govt. of India, new tax laws are applicable on Online Gaming apps from April 1st, 2023. As per the law, Platforms offering Online Games are required to deduct tax at source (“TDS”) at the time of withdrawal or the end of the Financial Year. TDS shall be levied at the rate of 30% for all the net winnings of a Player.
Here, net winnings is the difference between the total amount withdrawn and the total amount deposited in a financial year.
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What is ‘Net Winnings’?
Net Winnings is the difference between the total amount withdrawn and the total amount deposited in a financial year. Example -
Total Deposit Total Withdrawal ₹ 2000 ₹ 3000 Here, Net Winnings = Total Withdrawal - Total Deposit
= ₹ 3000 - ₹ 2000
Net Winnings = ₹ 1000
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How is tax calculated on 'Net Winnings'?
Net Winnings is the difference between the total amount withdrawn and the total amount deposited in a financial year. Example -
Total Deposit Total Withdrawal ₹ 2000 ₹ 3000 Here, Net Winnings = Total Withdrawal - Total Deposit
= ₹ 3000 - ₹ 2000
Net Winnings = ₹ 1000
Tax is calculated at the rate of 30% of Total Net Winnings at the time of Withdrawal. Let’s take the above example for reference.
Here, the Net Winnings is ₹ 1000. Tax = 30% of ₹ 1000 = ₹ 300 -
If my ‘Net Winnings’ go down during the year, can I get a refund of the TDS already deducted?