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TDS
As per the Finance Act 2023-24, 30% TDS will be deducted from all positive net winnings.
What’s New?
- Pay TDS only on net winnings.
- TDS will be deducted from the net winnings included in the withdrawal amount at the time of withdrawal or at the end of the financial year.
Note: This policy is liable to change depending on any further directive the Government of India issues.
Learn about the 2023-24 FY end
TDS settlement
What does it mean for players?
Players have to pay 30% TDS only on positive net winnings.
Here is the formula to calculate net winnings:
Understanding Key Terms
- Withdrawals: Current Withdrawal + Previous withdrawals made in the current FY.
- Deposits: Total amount deposited into the account by the player in the current FY.
- FY Opening Balance: Total wallet balance (deposit + withdrawable) on 1st April, i.e. at the start of the same current FY.
*Financial Year (FY) = 1st April to 31st March
Scenario 1: A player places the 1st withdrawal request for ₹10,000 in the financial year.
| Amount the player wants to withdraw (A) | ₹10,000 |
| Deposit made by player (B) | ₹3,000 |
| FY Opening Balance, on 1st April 2023 (C) | ₹5,000 |
|
Net Winnings ( A − B − C) |
₹2,000 |
| 30% TDS on Net Winnings | ₹600 |
| Player will get | ₹9,400 |
Scenario 2: A player places the 1st withdrawal request for ₹5,000 in the financial year.
| Amount the player wants to withdraw (A) | ₹5,000 |
| Deposit made by player (B) | ₹3,000 |
| FY Opening Balance, on 1st April 2023 (C) | ₹5,000 |
|
Net Winnings ( A − B − C) |
-₹3,000 |
| 30% TDS on Net Winnings | ₹0 |
| Player will get | ₹5,000 |
No TDS will be deducted when there are no positive net winnings.
Where can I see my tax summary?
Your TDS statement will be visible under the "Withdrawal" section.
Your will receive your TDS certificate after 45 days of the end of a quarter.
What happens when a player makes multiple withdrawals and deposits in a financial year?
Let us understand this with the help of a few examples of what happens when a player makes 2 or more withdrawals in a financial year.
Scenario 1: When Net winnings increase in the financial year.
FY Opening Balance: ₹5,000
The player deposits ₹3,000 on 5th April 2023.
1st withdrawal made on 20th May 2023 is as follows:
| Withdrawal 1 (A) | ₹10,000 |
| Deposit made (B) | ₹3,000 |
| FY Opening Balance (C) | ₹5,000 |
|
Net Winnings (A − B − C) |
₹2,000 |
| 30% TDS on Net Winnings | ₹600 |
| Player Received | ₹9,400 |
The player deposits ₹2,000 on 10th June 2023.
The player places a 2nd withdrawal request for ₹5,000 on 5th July 2023.
| Total Withdrawal (A) (₹10,000 + ₹5,000) | ₹15,000 |
| Total Deposit (B) (₹3,000 + ₹2,000) | ₹5,000 |
| FY Opening Balance (C) | ₹5,000 |
|
Net Winnings (A − B − C) |
₹5,000 |
| 30% TDS on Net Winnings | ₹1,500 |
| TDS Paid Already | ₹600 |
| TDS Deduction on 2nd Withdrawal | ₹900 |
| Player Received | ₹4,100 |
In this case, TDS as per current Net Winnings is ₹1,500. But the player has already paid ₹600 in the last withdrawal. Hence, only the balance TDS of ₹900 will be deducted.
That is why the player gets ₹4100 in their account after
the TDS deduction.
Scenario 2: When the player’s Net Winnings decrease in the financial year.
FY Opening Balance: ₹5,000
The player deposits ₹3,000 on 5th April 2023.
1st withdrawal made on 20th May 2023 is as follows:
| Withdrawal 1 (A) | ₹10,000 |
| Deposit made (B) | ₹3,000 |
| FY Opening Balance (C) | ₹5,000 |
|
Net Winnings (A − B − C) |
₹2,000 |
| 30% TDS on Net Winnings | ₹600 |
| Player will receive | ₹9,400 |
The player deposits ₹7,000 on 10th June 2023.
The player wants to make a 2nd withdrawal of ₹4,000 on 5th July 2023.
| Total Withdrawal (A) (₹10,000 + ₹4,000) | ₹14,000 |
| Total Deposit (B) (₹3,000 + ₹7,000) | ₹10,000 |
| FY Opening Balance (C) | ₹5,000 |
|
Net Winnings (A − B − C) |
-₹1,000 |
| 30% TDS on Net Winnings | 0 |
| TDS Deduction on 2nd Withdrawal | ₹0 |
| Player will get | ₹4,000 |
Since the Net Winnings have decreased, no TDS will be deducted from this withdrawal.
Note - This will be a case of Excess TDS Paid on Previous Withdrawal
In the above example,
TDS paid on 1st withdrawal = ₹600
TDS liability on 2nd Withdrawal (as per current net winnings) = ₹0
Excess TDS paid = ₹600
Note - There are 2 ways to claim back any excess TDS paid:
- Players can claim a refund from the Income Tax Department while filing ITR.
- Players can make a tax-free withdrawal till their TDS liability does not exceed the Excess TDS paid.
In the case of the above example,
The player can withdraw up to ₹2000 tax-free. (30% TDS on ₹2000 = ₹600)
Financial Year-End Settlement
Suppose a player has any balance (deposit balance + withdrawable balance) in their account at the end of the financial year, i.e. 31st March. In that case, TDS will be deducted from that amount by considering the whole amount as a withdrawal for that
financial year.
TDS liability will not be carried forward to the next financial year. The closing balance in a player’s account after the TDS settlement will become the Opening Balance for the next financial
year.
Total Withdrawal = Withdrawals made in the FY + Account balance on 31st March.
Net Winnings = Total Withdrawal − Total Deposit − FY Opening Balance
Net Winnings from which TDS has already been deducted will
not be considered for the final settlement.
Let us understand this with a few examples:
Opening Balance (on 1st April 2023): ₹5,000
Closing Balance (on 31st March 2024): ₹15,000
Withdrawals in FY: ₹0
Total Withdrawal (Closing account balance) = ₹15,000
| Total Withdrawal (A) | ₹15,000 |
| Total Deposit (B) | ₹5,000 |
| FY Opening Balance, on 1st April (C) | ₹5,000 |
| Net Winnings on 31st March 2024
(A − B − C ) |
₹5,000 |
| 30% TDS Deduction | ₹1500 |
₹1500 will be deducted from the total account balance on 31st March 2024.
₹13,500 will be carried forward as the Opening Balance on 1st April 2024, i.e., for the new financial year.
Opening Balance (on 1st April 2023): ₹5,000
Closing Balance (on 31st March 2024): ₹5,000
Withdrawals in FY: ₹20,000
TDS already paid during FY = ₹1,500
Total Withdrawal (Withdrawals in FY + Closing Balance)
= ₹20,000 + ₹5,000 = ₹25,000
| Total Withdrawal (A) | ₹25,000 |
| Total Deposit (B) | ₹10,000 |
| FY Opening Balance, on 1st April (C) | ₹5,000 |
| Net Winnings (A - B - C) |
₹10,000 |
| 30% TDS on Net Winnings (D) | ₹3,000 |
| TDS Already Paid (E) | ₹1,500 |
| Final Settlement TDS Due (D - E) | ₹1,500 |
₹1500 will be deducted from the player’s wallet on 31st March 2024.
₹3,500 will be carried forward as the Opening Balance on 1st April 2024.
Opening Balance (on 1st April 2023): ₹5,000
Closing Balance (on 31st March 2024) ₹5,000
Withdrawals in FY ₹15,000
TDS already paid during FY = ₹1,500
Total Withdrawals (withdrawals + closing balance) = ₹15,000
+ ₹5,000 = ₹20,000
| Total Withdrawals (A) | ₹20,000 |
| Total Deposits (B) | ₹10,000 |
| FY Opening Balance, on 1st April (C) | ₹5,000 |
| Net Winnings (A - B - C) |
₹5,000 |
| 30% TDS on Net Winnings | ₹1,500 |
| TDS Paid Already | ₹1,500 |
| Final Settlement TDS Due (D - E) | ₹0 |
No TDS will be deducted from the player’s account balance on 31st March 2024.
₹5,000 Closing Balance will be carried forward as the Opening Balance on 1st April 2024.
Opening Balance (on 1st April 2023): ₹5,000
Closing Balance (on 31st March 2024): ₹2,000
Withdrawals in FY: ₹15,000
TDS already paid during FY = ₹1,500
Total Withdrawal (withdrawals + closing balance) = ₹15,000
+ ₹2,000 = ₹17,000
| Total Withdrawals (A) | ₹17,000 |
| Total Deposits (B) | ₹15,000 |
| FY Opening Balance, on 1st April (C) | ₹5,000 |
| Net Winnings (A - B - C) |
-₹3,000 |
| 30% TDS on Net Winnings | ₹0 |
| TDS Paid Already | ₹1,500 |
No TDS will be deducted from the player’s account balance on 31st March 2024. ₹2,000 Closing Balance will be carried forward as the Opening Balance on 1st April 2024.
In this case, TDS liability on 31st March = ₹0 Excess TDS Paid = ₹1,500
The player will have to claim a TDS refund from the Income Tax Department when they file their ITR.
Prizes other than Cash
When a player wins non-cash prizes of real value (white goods) like cars, motorbikes, gadgets, etc., they will have to pay 30% TDS to Rummy.com before receiving the prize.
Rummy.com will remit the TDS to the government on the player’s
behalf and issue the player a TDS certificate.
Things to Remember :
- PAN verification is mandatory for making any withdrawal.
- Players will get a TDS certificate for tax filing after the quarter ends.
- Players can check the Tax Sheet in the ”Profile” section of Rummy.com.
-
Frequently Asked QuestionsWhat is TDS?
TDS means tax deducted at source.
According to income tax rules, a person/organization that is liable to make a payment of specified nature to any other person shall deduct tax at source and remit the amount into the account of the Central Government. A TDS certificate is issued by the person/organization that deducts the tax at source.What are the applicable TDS rates?TDS is deducted at the rate of 30% from net winnings.
Has there been a change to the calculation of Net Winnings?Yes
What has changed in the Net Winnings calculation?Previously, Net Winnings were calculated as Total Winnings − Total Losses. Now, Net Winnings are calculated as Total Withdrawals − Total Deposits − Opening Balance.
Why do I have to pay TDS if my income threshold as per the new/old tax regime is not getting breached?The tax liability on game winnings is calculated at the rate of 30%. Your tax liability for the rest of your income is calculated as per the income tax slabs and deductions. Please consult your tax advisor for more details.
I have already provided my Aadhaar. Why is PAN needed?PAN is needed to issue a TDS certificate, which can be used for filing ITR and claiming a refund (if any).
What if I don’t have a PAN?You will be unable to withdraw money if your PAN is not linked to your rummy.com account.
Where do I get the TDS certificate from?You will receive your TDS certificate from Rummy.com after 45 days of the end of a financial quarter.
I see different amounts getting deducted each time. What is the logic for TDS calculation?The TDS is deducted based on 5 parameters: Net winnings, total withdrawals, total deposits, opening balance at the start of the financial year, and TDS already paid on previous withdrawals. Depending on your Net Winnings at the time of withdrawal, 30% TDS is deducted from the withdrawal amount. You can always check the details in the Tax Sheet under the “Withdrawals” section.
How can I check if the TDS deducted from my winnings has been paid to the government?You will receive your TDS certificate from Rummy.com after 45 days of the end of a financial quarter. This TDS certificate will show the tax paid to the government on your behalf.
What will happen to the excess tax paid?You can claim back any excess TDS paid by filing an ITR return. Rummy.com shall provide you with TDS certificates within 45 days of the quarter's end for the purposes of tax filing.
Will I get a refund from Rummy.com?No. Any excess tax paid shall be refunded to the player by the Government of India after the player files an ITR. Rummy.com has no legal authority to refund any TDS paid.
What will happen to the balance in my rummy.com account at the end of the financial year (31st March)?Your account balance as of 31st March will be added to your Total Withdrawal to calculate your Net Winnings in the financial year. There will be 2 scenarios:
- 1. Net Winnings: Net Winnings > ₹0
30% TDS shall be deducted from your Net Winnings. The remaining account balance will be carried forward as the opening balance for the next financial year and will be tax-free. -
2. Negative Net Winnings: Net Winnings ≤ ₹0
No TDS will be deducted. The entire account balance will be carried forward as the opening balance for the next financial year and will be tax-free.
- 1. Net Winnings: Net Winnings > ₹0