top of page

TDS

What is TDS?

TDS (Tax Deducted at Source) is the tax amount applicable on your Net Winnings as per Section 194BA of the Income Tax Act of Govt. of India. TDS is calculated as 30% of your Net Winnings in a financial year starting from 1st April. TDS amount deducted from your wallet is deposited to the government.

What is Net Winnings?

Net Winnings is the difference between total winnings and total deposits made during the financial year initiated at the time of withdrawal. For example, if you have deposited a total of Rs 1,000 in the year, and won 3 games with Prize Pool of Rs 500 each, your Net Winnings will be = (500 x 3 – 1,000) = Rs 500. Any unutilized deposits at the end of the financial year will be carried forward to the next financial year.

What is a financial year?

A financial year is a period of 12 months (one year) starting from 1st April and ending on 31st March.

How is TDS calculated?

If your Net Winnings in a financial year are positive, TDS at the rate of 30% is applicable on your Net Winnings. For example, if your total Net Winnings in a financial year are Rs 10,000, a TDS of Rs 3,000 (30% of Rs 10,000) will be deducted. In case your total Net Winnings in a financial year are negative, no TDS will be applicable.

What is TDS liability?

TDS liability is the total TDS to be paid by you based on your current net winnings in the financial year. For example, in the above scenario, total TDS liability is equal to Rs 3,000

Can the TDS liability increase or decrease?

TDS liability will be calculated on the basis of your Net Winnings. If your Net Winnings increase during the financial year, the TDS liability would increase. Similarly, the TDS liability would go down if your Net Winnings decrease over the financial year. 

What is Paid TDS?

Paid TDS is the total TDS paid by you during the financial year.

What is outstanding TDS?

Outstanding TDS is the TDS amount that is yet to be paid by you. For example, if your total TDS liability in a financial year is Rs 3,000 and total TDS paid by you till date is Rs 2,000, the outstanding TDS will be Rs (3,000 – 2,000) = Rs 1,000

What happens if there is TDS outstanding at the end of the financial year?

If the total TDS paid by you till the end of the financial year is less than your total TDS liability, the difference would be automatically adjusted from your wallet balance at the end of 31st Mar. For example, if your total TDS liability in a financial year is Rs 3,000 and total TDS paid by you till 31st March  is Rs 2,000, the outstanding TDS of Rs 1,000 will be automatically deducted from your wallet balance.

Can the outstanding TDS be negative?

In case you have paid more TDS than your total TDS liability, the outstanding TDS will be negative. This can be claimed as a refund in the Income Tax Return filing.

When will the TDS deduction take place?

TDS deduction will be done at the time of withdrawal. In case your withdrawal is eligible for a TDS deduction, only the Net Withdrawal amount will be credited to your bank account. For example, if you want to withdraw Rs 500 and the TDS deduction applicable on your withdrawal is Rs 100, a Net Withdrawal amount of Rs (500 – 100) = Rs 400 will be credited to your bank account.

When will my withdrawal amount become eligible for a TDS deduction?

If your total withdrawals (including the new withdrawal)  in the financial year become more than your total deposits, the new withdrawal becomes eligible for a TDS deduction. The total deposits will be the sum of deposits made by you on the app.

Example 1

Total Deposits till date  = Rs 2,000
Total Withdrawals till date = Rs 1,500
New Withdrawal amount = Rs 1,000
Total Withdrawals (including the new Withdrawal) = Rs 1,500 + Rs 1,000 = Rs 2,500
Since the total Withdrawals exceed the total Deposits, the new Withdrawal will be eligible for a TDS deduction
Difference between total Withdrawal and total Deposits = Rs 2,500 – Rs 2,000 = Rs 500
TDS = 30% of Rs 500 = Rs 150
Net Withdrawal amount credited to your bank account = Rs 1,000 – Rs 150 = Rs 850

The TDS amount of Rs 150 paid by you will be attributed to your total Paid TDS.

Example 2

Total Deposits till date = Rs 5,000
Total Withdrawals till date = Rs 4,500
New Withdrawal amount = Rs 1,500
Total Withdrawals (including the new Withdrawal) = Rs 4,500 + Rs 1,500 = Rs 6,000
Total Paid TDS till date = Rs 100
Since the total Withdrawals exceed the total Deposits, the new Withdrawal will be eligible for a TDS deduction
Difference between total Withdrawal and total Deposits = Rs 6,000 – Rs 5,000 = Rs 1,000
TDS = 30% of Rs 1,000 = Rs 300
TDS deduction applicable on your transaction = Rs 300 – Paid TDS till date = Rs 300 – Rs 100 = Rs 200
Net Withdrawal amount credited to your bank account = Rs 1,500 – Rs 200 = Rs 1,300

The TDS amount of Rs 200 paid by you will be attributed to your total Paid TDS.

Example 3

Total Deposits till date = Rs 2,000
Total Withdrawals till date = Rs 1,500
New Withdrawal amount = Rs 300
Total Withdrawals (including the new Withdrawal) = Rs 1,500 + Rs 300 = Rs 1,800
Since the total Withdrawals do not exceed the total Deposits, the new Withdrawal will not be eligible for a TDS deduction
Net Withdrawal amount credited to your bank account = Rs 300 

What is a TDS certificate?

A TDS certificate is a certificate of TDS deduction issued by the deductor (hukumkaikka). The certificate contains details of the TDS deductions made during a particular time period. 

How are TDS certificates useful?

A TDS certificate can be used by you during Income Tax Return filing for claiming refund on the paid TDS if your outstanding TDS at the end of the financial year is negative.

When will the TDS certificates be available?

TDS certificates will be available on the app after your PAN-based KYC verification is complete. TDS certificates will be available only for TDS deductions made after your KYC verification.

“Please note that the TDS Policy is based on the understanding of TDS provisions which are yet to be clarified in accordance with the amended provisions introduced in Finance Act, 2023 with effect from April 1, 2023. Company reserves its rights to modify/ amend the TDS Policy based on TDS provisions applicable at the relevant time, upon clarifications received from the government of India.”

bottom of page