- What is TDS (Tax Deducted at Source)?
TDS, or Tax Deducted at Source, is the tax on your Net Winnings per Section 194BA of the Income Tax Act in India. It's 30% of your Net Winnings for a financial year starting from April 1. The deducted TDS goes to the government.
- What are Net Winnings?
Net Winnings are what you get by subtracting total deposits from total winnings in a financial year. If, say, you deposited Rs.1,000, won Rs.1500 by playing multiple games, then your Net Winnings would be (1500-1000) = Rs 500. Deposits that were unutilized 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 12-month period from April 1 to March 31.
- How is TDS calculated?
TDS is 30% of your positive Net Winnings. For example, if your total Net Winnings in a financial year are Rs.1000, a TDS of Rs 300 (30% of Rs 1000) will be deducted. If your Net Winnings in a financial year are negative, no TDS applies and there will be no deduction.
- What is TDS liability?
TDS liability is the total TDS based on your current financial year's Net Winnings. For example, in the above scenario, total TDS liability is equal to Rs 300.
- Can the TDS liability increase or decrease?
TDS liability is calculated based on your Net Winnings. If Net Winnings increase during the year, the TDS liability increases. Vice versa, if the Net Winnings decrease during the financial year, the TDS liability also decreases.
- What is Paid TDS & Outstanding TDS?
Paid TDS is what you've paid so far as TDS during the financial Year. Outstanding TDS is what's left and is yet to be paid by you. For example, if your total TDS liability in a year is Rs 300 and total TDS paid by you till date is Rs.200, then the outstanding TDS will be Rs (300 – 200) = Rs 100
- What happens if there is TDS outstanding at the end of the financial year?
If there is any TDS outstanding at the year-end on March 31st, then the difference is automatically adjusted from your wallet balance on the same day. For example, if your total TDS liability is Rs 300 and total TDS paid by you till 31st March is Rs 200, then the outstanding TDS of Rs Rs 100 will be automatically deducted from your wallet balance on 31st March itself.
- 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 happens at withdrawal. If your net withdrawals are higher than net deposits, then the amount credited to your bank account will be post TDS deduction. For example, if you want to withdraw Rs.500, and the TDS is Rs.100, then only Rs.400 (500 – 100) will be credited to your bank account.
- When will my withdrawal amount become eligible for a TDS deduction?
TDS deduction starts when total net withdrawals become higher than the total net deposits in the financial year. The total net deposits will be the sum of deposits made by you on the app, and the total net withdrawals will be the sum of withdrawals made by you on the app.Example 1Total Deposits till date = Rs.200
Total Withdrawals till date = Rs.150
New Withdrawal amount = Rs.100
Total Withdrawals (including the new Withdrawal) = Rs.150 + Rs.100 = Rs.250
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.250 – Rs.200 = Rs.50
TDS = 30% of Rs.50 = Rs.15
Net Withdrawal amount credited to your bank account = Rs.100 – Rs.15 = Rs.85The TDS amount of Rs.15 paid by you will be attributed to your total Paid TDS.Example 2Total 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 1,300The TDS amount of Rs 200 paid by you will be attributed to your total Paid TDS.Example 3Total 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 & how are they useful?
A TDS certificate, issued by Sahaj Gaming, details TDS deductions. It's useful for Income Tax Return filing, since it contains information about the TDS deduction details. You can use the TDS certificate 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 are available on the app after PAN-based KYC verification is completed by you.
“Please note that the 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.”
