FAQ - New Tax Rules
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I play on both RummyCircle & My11Circle. How will this impact me?
Players playing any games offered by Games24x7 have a common wallet across games. For taxation, deposits and withdrawals of both the platforms would be added to determine Net Winnings.
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I play on both RummyCircle & My11Circle. How will this impact me?
Players playing any games offered by Games24x7 have a common wallet across games. For taxation, deposits and withdrawals of both the platforms would be added to determine Net Winnings.
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How can I get my Tax Certificate to file IT Returns?
Tax Certificates will be issued within 1 month from the last date of filing TDS returns for every quarter.
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If my 'Net Winnings' go down during the year, can I get a refund of tax already deducted?
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What will happen if there is some amount remaining in my My11Circle A/c at the end of the Financial Year?
If there is some balance remaining in your My11Circle a/c on 31st March 2024, the tax will be deducted on that amount (considering it a withdrawal), and the remaining amount will be carried forward to 1st April 2024 i.e. the New Financial Year.
Example - Mr. Rao plays games & wins cash prizes on 31st March 2024 and does not make a withdrawal until 11:59 PM. Below are some more details -* Closing Balance = Deposit Balance + Winning Balance as on 31st March, 11:59 PM
To understand the tax deducted, we will have to determine the Net Winnings
= (Total Withdrawal) + (Closing A/c Balance) - (Total Deposit) - (Opening A/c Balance )
= ₹ 3000 + ₹ 1000 - ₹ 2000 - ₹ 1500
= ₹ 500
30% Tax on above Net Winnings = ₹ 150
Let’s say, out of ₹ 150, ₹ 100 tax already deducted earlier
And so, the remaining Tax to be deducted is ₹ 50
The remaining Tax would be deducted from the Closing A/c Balance & carried forward to the new Financial Year: ₹ 1000 - ₹ 50 = ₹ 950
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Will my Opening A/c Balance be considered if I want to make a withdrawal at the start of the new Financial Year (April 2024)?
Let's consider the following table as an example -
Opening A/c Balance as on 1st April 2024 = ₹ 1500
Total Deposit = ₹ 2000
Total Withdrawal = ₹ 3000
Tax is deducted on Net Winnings.
At the start of the Financial Year (1st April 2024), if there's an Opening Balance, Net Winnings is calculated as
= (Total Withdrawals) - (Total Deposits) - (Opening Balance)
= ₹ 3000 - ₹ 2000 - ₹ 1500
= - ₹ 500
As the Net Winning here is negative, there will be no tax deduction. And so, your withdrawal amount post tax deduction would be ₹ 3000 - ₹ 0 = ₹ 3000 -
Will tax be deducted if I withdraw an amount lesser than my total deposits?
If your total withdrawal is less than your deposit, no tax will be deducted. Example -
Total Deposit = ₹ 4000
Total Withdrawal = ₹ 2000
Here, Net Winnings = Total Withdrawal - Total Deposit
= ₹ 2000 - ₹ 4000Net Winnings = - ₹ 2000
As Net Winning is negative, there will be no tax deduction.
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When will tax be deducted?
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How is tax calculated on 'Net Winnings'?
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 -
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 = ₹ 2000
Total Withdrawal = ₹ 3000
Here, Net Winnings = Total Withdrawal - Total Deposit
= ₹ 3000 - ₹ 2000
Net Winnings = ₹ 1000