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- You now only pay TDS on your net winnings.
- TDS will be subtracted from the net winnings within the withdrawal amount when you take out your money or at the end of the financial year.
- Players are required to pay a 30% TDS only on their net winnings.
- Here's the formula to calculate net winnings:
- Withdrawals: The sum of the current withdrawal and any withdrawals made earlier in the current FY.
- Deposits: The overall amount that the player has put into their account during the current FY.
- FY Opening Balance: The total wallet balance (deposits and withdrawable) on the 1st of April, marking the beginning of the current FY.
Player's Deposit (B): ₹3,000
FY Opening Balance on April 1, 2023 (C): ₹5,000
Net Winnings (A - B - C): ₹2,000
30% TDS on Net Winnings: ₹600
Player will receive: ₹9,400
Player's Deposit (B): ₹3,000
FY Opening Balance on April 1, 2023 (C): ₹5,000
Net Winnings (A - B - C): -₹3,000
30% TDS on Net Winnings: 0
Player will receive: ₹5,000
The player deposits ₹3,000 on 5th April 2023.
1st withdrawal made on 20th May 2023 is as follows:
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 get ₹9,400
The player places a 2nd withdrawal request for ₹5,000 on 5th July 2023.
Total Deposit (B) (₹3,000 + ₹2,000) ₹5,000FY
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 will get ₹4100
FY Opening Balance: ₹5,000
The player deposits ₹3,000 on 5th April 2023.
1st withdrawal made on 20th May 2023 is as follows:
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
On June 10, 2023, the player adds ₹7,000 to their account. Subsequently, on July 5, 2023, the player intends to make a second withdrawal of ₹4,000.
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 ₹4000
As the Net Winnings have decreased, there will be no TDS deduction from this withdrawal.
Please note that this situation results in excess TDS paid during the previous withdrawal.
TDS paid on 1st withdrawal = ₹600
TDS liability on 2nd Withdrawal (as per current net winnings) = ₹0
Excess TDS paid = ₹600
- 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 given example, you can withdraw up to ₹2,000 without any tax deduction. Since the applicable TDS rate is 30%, the calculated TDS on ₹2,000 is ₹600.
To calculate the Total Withdrawal for the financial year: Total Withdrawal=Withdrawals made in the FY+Account balance on March 31stTotal Withdrawal=Withdrawals made in the FY+Account balance on March 31st
The Net Winnings are determined as follows: Net Winnings=Total Withdrawal−Total Deposit−FY Opening BalanceNet Winnings=Total Withdrawal−Total Deposit−FY Opening Balance
Net Winnings from which TDS has already been deducted are not considered for the financial year-end settlement.
Closing Balance (on 31st March 2024): ₹15,000
Withdrawals in FY: ₹0
Total Withdrawal (Closing account balance) = ₹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
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 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
Withdrawals in FY ₹15,000
TDS already paid during FY = ₹1,500
Total Withdrawals (withdrawals + closing balance) = ₹15,000 + ₹5,000 = ₹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
Withdrawals in FY: ₹15,000
TDS already paid during FY = ₹1,500
Total Withdrawal (withdrawals + closing balance) = ₹15,000 + ₹2,000 = ₹17,000
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
Key considerations to keep in mind.
You'll get a tax certificate every quarter for filing taxes.
Check your tax details in the "Withdrawal" section on Rummy Sarkar.
What is TDS?
TDS stands for tax deducted at source. As per income tax rules, if someone or an organization has to make a payment of a certain kind to another person, they must deduct tax upfront and send it to the Central Government. The entity deducting the tax provides a TDS certificate to the person from whom the tax is deducted.
What are the applicable TDS rates?
30% of net winnings is deducted as TDS.
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 Sarkar account.
Where do I get the TDS certificate from?
You will get a quarterly TDS certificate from Rummy Sarkar, which will be available within 45 days of the end of the 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?
Rummy Sarkar will issue you a TDS certificate at the end of every quarter.
What will happen to the excess tax paid?
You can claim back any excess TDS paid by filing an ITR return. Rummy Sarkar 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 Sarkar?
No. Any excess tax paid shall be refunded to the player by the Government of India after the player files an ITR. Rummy Sarkar has no legal authority to refund any TDS paid.
What will happen to the balance in my Rummy Sarkar 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.
