TDS Policy

As per the Union Budget 2023, the Government of India passed a Finance Bill that contains new tax laws for Online gaming from the financial year 2023-24. As per the laws in the bill, it is mandatory for online gaming to deduct Tax at source whenever a player makes a withdrawal and also at the end of the financial year. TDS will be levied at 30% of all the ‘Net Winnings’ of the player.

What is TDS?

TDS is Tax Deducted at Source. Whenever a player takes withdrawal, a 30% tax is deducted only from the ‘Net winnings’ of the player.

As per the income tax regulations, individuals or organizations who are obligated to make payments of a specified nature to another party are required to deduct tax at source and remit the corresponding amount to the Central Government. Subsequently, a TDS certificate is issued by the entity responsible for deducting the tax at source.

What are Net Winnings?

Net Winnings refer to the difference between the overall amount of money a player has withdrawn and the deposits they have made.

Formula: Net Winnings = Total Withdrawals – Total Deposits

Example:

A player deposits Rs. 10,000 in the Rummy wallet on 10 May 2023. His/her opening balance on 1 April 2023 was Rs. 5,000. He plays cash games and wins Rs. 30,000, which gets deposited in his/her Withdrawal balance. If he requests a withdrawal of Rs. 25,000 on 25 May 2023, then:

Net Winnings = 25,000 – (10,000 + 5,000) = 10,000

A 30% TDS on Rs. 10,000 will be Rs. 3,000. Hence, the player will receive Rs. 22,000 in his/her bank account.

Important Notes:

• At the start of every financial year, Net winnings will get reset.
• Players will receive Tax Certificates within one month from the final date of filing TDS returns for each quarter.

TDS for Prizes other than Cash

In case of winning non-cash prizes such as cars, bikes, gadgets, and similar items from Rummy Game, a 30% TDS is required to be paid before receiving the prize. Rummy Game will remit the TDS to the government and provide a TDS certificate.

GST Policy

With effect from 1st October 2023, the Government of India amended the National GST Laws to impose a 28% GST on every deposit on all Online Money Gaming Platforms. However, we are exempting you from this burden through our limited-time Post GST promotional offer!

Note:

Withdrawal without gameplay will generally not be entertained. However, in some cases, 5% of the deposited amount and 28% GST on the deposited amount will be charged to process the Withdrawal.