In accordance with the provisions of the Finance Act, 2023, following TDS policy is applicable for all players on PokerNXT from 01 April 2023 :
Note
Withdrawal means when a player raises the request from his cash wallet and the amount is transferred to his registered KYC-cleared bank account.
Find below a few scenarios to understand the application of the aforementioned TDS Policy.
Scenario 1: If your net winnings (including the withdrawal amount) are more than 0, then 30% TDS will be deducted on the net winnings at the time of withdrawal.
Example:
Total withdrawals in the financial year(A) | ₹5,000 |
Total deposits in the financial year(B) | ₹10,000 |
Opening Balance on 1 April in cash wallet (C) | ₹0 |
Sum of winnings taxed Already (D) | ₹0 |
Using the above scenario, if you want to withdraw ₹7000, then total withdrawals in a financial year (A) will be ₹5000 + ₹7000 = ₹12000, and the net winnings will be calculated as follows:
Net Winnings [A - (B+C) - D] = [12000 - (10000 + 0) - 0] | 2000 |
30% TDS Applicable on Net Winnings | 600 |
30% TDS Applicable on Net Winnings(D) | ₹600 |
Amount to be credited to the Bank account (current withdrawal amount - TDS) | 6400 |
Zero TDS Withdrawal amount: In the same scenario, if you withdraw up to ₹5,000 , then there will be zero TDS deducted as net winnings will be ₹0 [10000 - (10000 + 0) - 0]. See the calculation below:
Total withdrawals in the financial year(A) | ₹5,000 |
Total deposits in the financial year(B) | ₹10,000 |
Opening Balance on 1 April in cash wallet (C) | ₹0 |
Sum of winnings taxed Already (D) | ₹0 |
Using the above scenario, if you want to withdraw ₹5000, then total withdrawals in a financial year (A) will be ₹5000 + ₹5000 = ₹10000, and the net winnings will be calculated as follows:
Net Winnings [A - (B+C) - D] = [10000 - (10000 + 0) - 0] | 0 |
30% TDS Applicable on Net Winnings | 0 |
Amount to be credited to the Bank account(current withdrawal amount - TDS) | 5000 |
Scenario 2: If you have paid TDS in previous withdrawals, then no TDS is applicable on withdrawals till your net winnings cross the amount for which you have already paid TDS.
(TDS of ₹1800 paid on winnings of ₹6,000 as initially you had positive net winnings of ₹6,000)
Total withdrawals in a financial year (A) | 14000 |
Total deposits in a financial year (B) | 20000 |
Opening Balance on 1 April in cash wallet (C) | 0 |
Sum of winnings taxed Already (D) (TDS of ₹1800 paid on winnings of ₹6,000 as initially you had positive net winnings of ₹6,000) |
6000 |
In the above scenario, No TDS is applicable till your net winnings cross ₹6,000 (winnings already taxed). If you want to withdraw ₹6000, then total withdrawals in a financial year (A) will be ₹14000 + ₹6000 = ₹20000, and the net winnings will be calculated as follows:
Net Winnings [A - (B+C) - D] = [20000 - (20000 + 0) - 6000] | -6000 |
30% TDS Applicable on Net Winnings | 0 |
Amount to be credited to the Bank account (current withdrawal amount - TDS) | 6000 |
Scenario 3:You have paid TDS on initial winnings during the financial year but your net winnings have reduced post that.
Example:
Total withdrawals in the financial year(A) | ₹40,000 |
Total deposits in the financial year(B) | ₹20,000 |
Opening Balance on 1 April in cash wallet (C) | 0 |
Sum of winnings taxed Already (D) | ₹20,000 |
TDS paid to date | ₹6,000 |
TDS of ₹6000 was paid on winnings of ₹20,000 as initially, you had positive net winnings of ₹20,000. Post this, if your net winnings reduce to ₹10,000, then, subject to applicable law, the excess TDS deducted can be claimed as a refund in your annual income tax filing.
Scenario 4: At the end of the financial year, if you have an amount in your account, then TDS will be calculated on that amount by considering it as a withdrawal of the financial year and the remaining amount will be carried forward to the next year as starting deposit amount. Withdrawal from the starting deposit amount will not be subject to TDS in the next year.
Example:
Total withdrawals in the financial year(A) | ₹40,000 |
Total deposits in the financial year(B) | ₹35,000 |
Account balance at the end of Mar 31, 2024(C) | ₹30,000 |
Sum of winnings taxed already (D) (TDS of ₹1500 paid on winnings of ₹5,000 as initially you had positive net winnings of ₹5,000) |
₹5,000 |
In the above scenario, since the account balance at the end of March 31, 2024, would be considered a withdrawal, then total withdrawals in a financial year (A) will be ₹40000 + ₹30000 = ₹70000 and the net winnings will be calculated as follows:
Total withdrawals in the financial year (A) | ₹70,000 |
Total deposits in the financial year(B) | ₹35,000 |
Net winnings (A - B - D) | ₹30,000 |
30% TDS Applicable on Net Winnings | ₹9,000 |
Thus, ₹9,000 TDS is deducted from your account balance at the end of Mar 31, 2024, and the remaining balance of ₹21,000 will be carried forward to the next financial year as a deposit amount. You will not have to pay TDS in the next financial year on withdrawal of this amount.
Important Rules Regarding TDS Calculation on Winnings: