In line with the provisions contained in Finance Act, 2023, following TDS policy is applicable for all players on Rummywood from 1 Apr, 2023.
- TDS is applicable at the time of withdrawal and also at the year end
- 30% TDS is applicable on net winnings at the time of withdrawal and also at the year end
Net winnings = Total withdrawals - Total deposits
Net winnings =
Total withdrawals - Total deposits
* Total deposits = deposits in the financial year + opening balance of the financial year
Any net winnings which have suffered TDS at the time of any earlier withdrawal would also be reduced while computing net winnings at the time of withdrawal.
Please note: 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:
- You have a balance of ₹10,000 in your account on 25 Mar, 2023 and you decide to withdraw on 5 Apr, 2023.
- On 1 Apr, 2023, ₹10,000 will be considered as your year opening balance which will be considered as a deposit in TDS calculation.
- No TDS will be applicable as your net winnings are ₹0.
Example:
Total withdrawals (A) ₹10,000
Total deposits (B) ₹10,000
(same as opening balance)
Net winnings (A- B) ₹0
TDS applied ₹0
Withdrawal amount ₹10,000
Amount eligible without tax ₹6,000
Taxable amount (Net winnings : A-B )
₹4,000TDS on taxable amount @30% ₹10,000
Amount to be credited to your bank account ₹8,800
