TDS Policy

About this Policy

In line with the provisions contained in Finance Act, 2023, the following TDS policy is applicable for all players on Playship Rummy from 1 Apr, 2023.

TDS is applicable at the time of withdrawal and also at the year end
30% TDS is applicable on net winnings at the time of withdrawal and also at the year end

How winnings is calculated?

Net winnings : Total Withdrawals - Total Deposits* (in a financial year i.e 1 Apr to 31 Mar)

* Total deposits refers deposits in the financial year + opening balance of financial year

Any net winnings which have suffered TDS at the time of any earlier withdrawal would also be reduced while computing Net winnings at the time of withdrawal

Please note:

The TDS Policy is based on the understanding of the provisions as introduced/ amended by Finance Act, 2023 and the Company reserves its right to modify/ change/ amend the TDS Policy basis law applicable at the relevant time.

Find below a few scenarios to understand application of the aforementioned TDS Policy.

Scenario 1 :

You have a balance of ₹10,000 in your account on 25 Mar 2023 and you decide to withdraw on 05 Apr 2023
On Apr 1, 2023, ₹10,000 will be considered as your year opening balance which will be considered as deposit in TDS calculation
No TDS will be applicable as your net winnings are ₹0

Example

Total withdrawals (A)

₹10,000

Total deposits (B) (same as opening balance)

₹10,000

Net winnings (A- B)

₹0

TDS applied

₹0

Scenario 2 :

If your net winnings are less than or equal to ₹0, then TDS is not applicable.

Let us consider you have a year opening balance of ₹3,000 as on 1 Apr, 2023 and have deposited ₹7,000 on 2 Apr, 2023.

Example

Total deposits (B)

Opening balance (as of 1 Apr, 2023)

₹3,000

Deposit (deposited on 2 Apr, 2023)

₹7,000

Total Deposits (B)

₹10,000

Now, if you are withdrawing ₹5,000 on 3 Apr, 2023, here's how the TDS calculation will work.

Total withdrawals (A)

₹5,000

Total deposits (B)

₹10,000

Net winnings (A- B)

-₹5,000

TDS applied(As net winnings is negative)

₹0

Scenario 3 :

If your net winnings (including the withdrawal amount) are more than 0, then 30% TDS will apply to the net winnings at the time of withdrawal.

Assume that in a financial year, you’ve deposited a total of ₹7,000 and have also had an opening balance of ₹3,000 at the start of this financial year. So now, your total deposit stands at ₹10,000 (₹3,000 + ₹7,000).

Total deposits (B)

Opening balance

₹3,000

Deposit

₹7,000

Total Deposits (B)

₹10,000

In the same financial year, you have completed a withdrawal of ₹5,000. And on 30 Apr, 2023, you wanted to withdraw an additional ₹7,000. So, with this withdrawal, your total withdrawal stands at ₹12,000 (₹5,000 + ₹7,000).

Total Withdrawals (A)

Withdrawal on 23 April ,2023

₹5,000

Withdrawal on 30 April, 2023

₹7,000

Total Withdrawals (A)

₹12,000

In this case, on your withdrawal request of ₹7,000, TDS will be applied to the net winnings (A-B) of ₹2,000 (₹12,000 - ₹10,000) at a rate of 30%. However, no TDS will be applied to the remaining balance of ₹5,000. After deducting ₹600 TDS, ₹6,400 will be credited to your account.

Withdrawal amount

₹7,000

Amount eligible without tax

₹5,000

Taxable amount(Net winnings : A-B )

₹2,000

TDS on taxable amount@30%

-₹600

Amount to be credited
to your bank account

₹6,400

Scenario 4 :

If TDS has been applied to your previous withdrawals, then no TDS is applicable on withdrawals till your net winnings exceed the amount for which you have already paid TDS.

Let us consider that as of 30 Apr, 2023, the following TDS calculations were applied:
Total withdrawals in the financial year = ₹20,000
Total deposits in the financial year = ₹14,000
So, your net winnings are = ₹6,000.
On this ₹6,000, you TDS @30% was applied = ₹1,800
Now, as of 15 May, 2023, let us assume your deposits increase to ₹20,000 (₹14,000 as of 30 Apr, 2023 + ₹6,000 additional deposit between 30 Apr to 15 May, 2023).
Total withdrawals = ₹20,000.
Total deposits = ₹20,000 (₹14,000 as of 30 Apr + ₹6,000 additional deposit between 30 Apr to 15 May) Net winnings previously taxed = ₹6,000 (₹1,800 TDS deducted on net winnings of ₹6,000 @ 30%)

Here, there could be two possibilities.

No TDS is applicable till your net winnings cross ₹6,000 as your winnings have already been taxed.

Possibility 1:

If you withdraw up to ₹6,000 (already taxed), no TDS is applicable (as TDS is already paid)

Withdrawal amount

₹6,000

Amount eligible without tax

₹6,000

Taxable amount

₹0

TDS on taxable amount @ 30%

-₹0

Amount to be credited
to your bank account

₹6,000

Possibility 2:

If you withdraw ₹10,000, then TDS is applicable only on ₹4,000 net winnings @30% because you have already paid tax on ₹6,000. So, on withdrawal request of ₹10,000, TDS of ₹1,200 will be deducted and remaining amount of ₹8,800 will be credited to your bank account.

Withdrawal amount

₹10,000

Amount eligible without tax

₹6,000

Taxable amount

₹4,000

TDS on taxable amountTax rate is 30%

-₹1,200

Amount to be credited
to your bank account

₹8,800

Scenario 5 :

Let us assume you have paid TDS on the initial winnings during the financial year, but your net winnings have reduced subsequently.

In this case on 30 Apr, 2023, following the TDS calculation in your account:

TDS calculations as on 30th April 2023

Total Withdrawals (A)

₹20,000

Total Deposits (B)

₹14,000

Net winnings (A- B)

₹6,000

TDS on taxable amount@30%

₹1,800

After this, on 15 May, 2023 your deposit reaches ₹20,000 (₹14,000 balance till 30 Apr + ₹6,000 additional amount deposited from 30 Apr to 15 May)
Total withdrawals in the financial year = ₹20,000 Net winnings in the financial year = ₹20,000- ₹20,000 = 0

TDS calculations as on 15 May, 2023

Total Withdrawals (A)

₹20,000

Total Deposits (B)

₹20,000

Net winnings (A- B)

₹0

In such a case, subject to applicable law, the excess TDS applied can be claimed as a refund during your annual income tax filing.

We are often asked what happens to the balance lying in an account at end of the financial year.

Scenario 6 :

At the end of the financial year, if you have some amount lying in your wallet (excluding the amount on the table), then TDS will be applied to that amount by considering it as a withdrawal for the financial year. The remaining amount will be carried forward to the next year as an opening balance. A withdrawal from the opening balance will not be subjected to TDS in the next year.

For example, let us assume in a financial year:
Total deposits in the financial year = ₹40,000
Total withdrawals in the financial year = ₹40,000
TDS paid till date (on winning amount of ₹5,000 as initially you had positive net winnings of ₹5,000) = ₹1,500
Account balance at the end of 31 Mar, 2024 = ₹30,000

In this situation, following calculation will be done in your account:

Total Withdrawal amount (A)Withdrawals of ₹40,000 + ₹30,000 a/c balance

₹70,000

Total deposits (B)

₹40,000

Net winnings ( A- B)

₹30,000

Net winnings previously taxed

₹5,000

Taxable net winnings (₹30,000- ₹5000)

₹25,000

TDS on net winnings 30% on ₹25000

₹7,500

Thus, a TDS of ₹7,500 is applied to your account balance at the end of 31 Mar, 2024 and the remaining balance of ₹22,500 (₹30,000- ₹7,500) will be carried forward to the next financial year as a opening balance. TDS will not be applied in the next financial year on withdrawals of ₹22,500.

Special Note :

In case, you have an amount on the table at the end of the financial year, then it will not be considered in next year's opening balance.