Complying with the requirements of newly introduced TDS provisions on online gaming by the Finance Act, 2023, we have updated our TDS policy effective from 1st April 2023. The following TDS policy will apply to all the users:
The company will deduct TDS at a rate of 30% on the net winnings of the users at time of withdrawal and at the end of the financial year ('F.Y').
For the purpose of TDS calculation net winnings definition would be:
|Net winnings* at the time of first withdrawal in FY
|A - (B + C)
|Net winnings** at the time of each subsequent withdrawal
|A - (B + C + D)
|Net winnings at end of the F.Y
|(A + E) - (B + C + D)
*Net winnings shall be zero, if the sum of amounts B & C is equal to or greater than the amount A.
**Net winnings shall be zero, if the sum of amounts B, C and D is equal to or greater than the amount A.
1) Users must provide their valid PAN details and a copy of their PAN card before their first withdrawal, as required by the Terms & Conditions. Failure to provide PAN will result in the inability to withdraw winnings.
2) If users fail to provide valid PAN details or a copy of their PAN card by the end of the financial year, the company will deduct tax at source on net winnings as of the end of the financial year and remit the amount to the government authorities on a no- name basis.
3) The Company reserves the right to amend / modify this Policy at any time in line with applicable rules and provisions of the Income Tax Act, 1961 as amended from time to time without giving any prior notice to the users.
Do I have to pay TDS on my entire 'net winnings from the beginning of the financial year' at each Redeem?
If my 'Net Winnings' are reduced by the end of the financial year, will A23 give a refund of the TDS already deducted?
If your net winnings reduce or become negative at the end of the financial year, you can file your tax returns and claim refunds from the income tax department depending on your overall tax liability. For more information, please contact your tax adviser.
A23 will provide the TDS Certificates so you can file your tax returns. However, A23 will not refund any excess TDS to the players.