TDS Policy

TDS on Withdrawals

In line with the provisions contained in Finance Act, 2023, the following TDS policy is applicable for all rummy players on Rummy Champions 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 at the year end.

Net Winnings

Net winnings are calculated as:

  • Net winnings = Total withdrawals - Total deposits (in a financial year i.e., 1 Apr to 31 Mar).
  • Total deposits = Deposits in the financial year + Opening balance of the financial year.

Any net winnings that have suffered TDS at the time of earlier withdrawals will also be reduced while computing net winnings for subsequent withdrawals.

Note: The TDS Policy is based on the Finance Act, 2023. Rummy Champions reserves the right to modify the TDS policy based on applicable laws.

TDS Scenarios

Scenario 1:

You have a balance of ₹10,000 in your account on 25 Mar, 2023, and withdraw on 5 Apr, 2023. On 1 Apr, ₹10,000 is considered as your year opening balance.

  • Total withdrawals (A): ₹10,000
  • Total deposits (B): ₹10,000
  • Net winnings (A - B): ₹0
  • TDS applied: ₹0

Scenario 2:

If net winnings are less than or equal to ₹0, no TDS is applicable. For example:

  • Year opening balance (1 Apr, 2023): ₹3,000
  • Deposits (2 Apr, 2023): ₹7,000
  • Total deposits (B): ₹10,000

If you withdraw ₹5,000 on 3 Apr, 2023:

  • Total withdrawals (A): ₹5,000
  • Net winnings (A - B): -₹5,000
  • TDS applied: ₹0

Scenario 3:

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

Note: Information provided here is for educational purposes only. Please consult your financial or tax advisor for specific tax-related queries.