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TDS Policy

  • In line with the provisions contained in Finance Act, 2023, following TDS policy is applicable for all players on RummyCulture from 1 Apr, 2023.

  • TDS is applicable at the time of withdrawal or deposit refund.

  • TDS is applicable only on net winnings at the time of withdrawal.

  • 30% TDS is applicable in case a player’s net winnings crosses 10,000 in a financial year.

  • TDS is also applicable at the end of financial year on year end wallet balance (excluding the amount on the table) by considering it as a withdrawal amount. Post applying TDS on the remaining balance (as per policy), the remaining amount will be carried forward to the next financial year as starting balance. Carried forward balance will be considered as investment for next year and TDS would not be applicable for that amount.

    Here, Net winnings = Total Withdrawals - Total Deposits (in a financial year). Apr 1 to Mar 31 duration is considered a financial year.

    Please note that the TDS Policy is based on the understanding of the provisions as introduced/ amended by Finance Act, 2023 and the Company reserves its right to modify/ change/ amend the TDS Policy basis law applicable at the relevant time.

    Find below a few scenarios to understand application of the aforementioned TDS Policy.

    Scenario 1:

    If your net winnings (including the amount being withdrawn) is below 10,000 then no TDS is applicable on the withdrawal. If the net winnings crosses ₹10,000 then 30% TDS applicable on net winnings above 10,000.

    Example:
    Total withdrawals in the financial year (A)
    ₹15,000
    Total deposits in the financial year (B)
    ₹10,000
    Net winnings in the financial year (A-B)
    ₹5,000

    In the above scenario, no TDS applicable if net winnings is lower than or equal to 10,000. So, you can withdraw upto more ₹5,000 without paying any TDS.

    Scenario 2:

    If you have paid TDS in previous withdrawals, then no TDS is applicable on withdrawals till your net winnings crosses the amount for which you have already paid TDS.

    Example:
    Total withdrawals in the financial year (A)
    ₹15,000
    Total deposits in the financial year (B)
    ₹10,000
    Net winnings in the financial year (A-B)
    ₹5,000

    In the above scenario, if you withdraw ₹7,000, then your net winnings = ₹22,000 - ₹10,000 = ₹12,000. So, 30% TDS is applicable on net winnings above ₹10,000 = ₹2,000. Post deducting ₹600 TDS, the remaining amount of ₹6,400 will be credited to your bank account.

    Scenario 3:

    If your net winnings at the time of withdrawal is more than 10,000 then for any amount that you are withdrawing, 30% TDS will be applicable.

    Example:
    Total withdrawals in the financial year (A)
    ₹45,000
    Total deposits in the financial year (B)
    ₹30,000
    Net winnings in the financial year (A-B)
    ₹15,000

    In the above scenario, you withdraw any amount, 30% TDS will be applicable on the withdrawal amount. So, if you withdraw ₹10,000 more, then ₹3,000 TDS will be deducted and ₹7,000 will be credited to your bank account.

    Scenario 4:

    If you have paid TDS on previous withdrawals and net winning reduces to a lower amount, then you can withdraw the amount without TDS till the time net winning crosses ₹10,000 + winnings for which you have already paid TDS.

    Example:
    Total withdrawals in the financial year
    ₹40,000
    Total deposits in the financial year
    ₹40,000
    TDS paid till date
    On winning amount of ₹5,000
    ₹1,500

    In this scenario, No TDS applicable till your net winnings crosses ₹10,000 + ₹5,000 (winnings already taxed) = ₹15,000. If you withdraw up to ₹15,000, no TDS is applicable. If you withdraw ₹20,000, then 30% TDS is applicable on ₹5,000 winnings only.

    Scenario 5:

    You have paid TDS in initial winnings during the financial year but your net winnings have reduced post that.

    Example:
    Total withdrawals in the financial year
    ₹40,000
    Total deposits in the financial year
    ₹20,000
    Net winnings in the financial year
    ₹20,000
    TDS paid till date
    ₹6,000

    Post this, if your net winnings reduces to ₹10,000, then, subject to applicable law, the excess TDS deducted can be claimed as refund in your annual income tax filing.

    Scenario 6:

    At the end of the financial year, if you have an amount in your wallet (excluding the amount on the table), then TDS will be calculated on that amount by considering it as a withdrawal of the financial year and remaining amount will be carried forward to next year as starting balance. Withdrawal from starting balance will not be subject to TDS in the next year.

    Example:
    Total withdrawals in the financial year
    ₹40,000
    Total deposits in the financial year
    ₹40,000
    TDS paid till date
    On winning amount of ₹5,000
    ₹1,500
    Account balance
    (at the end of Mar 31, 2024)
    ₹30,000

    Post this, if your net winnings reduces to ₹10,000, then, subject to applicable law, the excess TDS deducted can be claimed as refund in your annual income tax filing.

    Total withdrawals in the financial year
    ₹70,000
    Total deposits in the financial year
    ₹40,000
    Net winnings
    ₹30,000
    Net winnings above 10,000 which is eligible for TDS
    ₹20,000
    New winnings already taxed
    ₹5,000
    Taxable net winnings
    ₹15,000
    TDS @30%
    ₹4,500

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