The TDS Policy at HKI Rummy has been recommended by senior tax consultants in India and proves to be advantageous for both players and the card game industry in the long run.

TDS note:

• The TDS will be deducted at the time of withdrawal.
• The TDS will be applicable only on the winnings and not the deposits.
• 30% TDS will be applicable at the time of withdrawal if the net winnings of a player exceed his total deposit amount in a financial year.

For reference:

Net winnings = Difference between Total Withdrawals in a financial year and Total Deposits in the same financial year. A financial year is counted from 1st April to 31st March.

What Does It Mean For Players?

1. If your net winnings at the time of making a withdrawal are more than the total amount deposited at the time of withdrawal, 30% TDS will be applicable on any amount being withdrawn.
   For example: Your Total Deposits in the current financial year at the time of withdrawal is 15,000. Your Total Withdrawal in the current financial year at the time of withdrawal is 16,000. In the above scenario, the following will be applicable: there will be 30% TDS deduction on the Rs.1000 amount being withdrawn.
2. If your net winnings at the time of making a withdrawal are less than your total deposit amount at the time of withdrawal, TDS will not be applicable on any amount being withdrawn unless the withdrawing amount does not increase your total withdrawal amount from your total deposit.
   For example: Your Total Deposits in the current financial year at the time of withdrawal is 15,000. Your Total Withdrawal in the current financial year at the time of withdrawal is 7,000. In the above scenario, the following will be applicable: If you withdraw up to 8,000, there will be no TDS deduction. If you withdraw 10,000 there will be a 30% TDS deduction on 2000 only.
3. If there was TDS deducted at an earlier withdrawal and later your net winnings go below your total deposit amount, you will be eligible to withdraw without any TDS deduction till your net winnings plus the amount on which you have already paid the TDS.
   For Example: Your Total Deposits in the current financial year at the time of withdrawal are 50,000. Your Total Withdrawal in the current financial year at the time of withdrawal is 40,000. TDS paid in the current financial year is 6000 (That is a winning amount of 20,000). In the above scenario, the following will be applicable: If you withdraw up to 30,000, there will be no TDS deduction. If you withdraw 50,000, there will be a 30% TDS deduction on 20000 only.

FAQS

1. What are the latest changes to TDS (Tax Deducted at Source) on online gaming apps?

As per the Finance Act 2023, all Real Money Gaming Apps are mandated to deduct tax at the rate of 30% on users' Net Winnings at the time of withdrawal or at the end of the financial year.

2. When will the tax be deducted?

The tax will be calculated on the Net Winnings and deducted at the time of a user making a withdrawal and to the extent there is a tax liability. Further, at the end of the year (March 31), the total tax liability on the net winnings during the year will be calculated and deducted from the player’s wallet

3. If my ‘Net Winnings’ go down during the year, can I get a refund of the TDS already deducted?

Tax on net winnings at the time of the withdrawal that are deducted are paid to the income tax department for the credit of the player. Players can file their returns with the income tax department and claim refunds subject to the Player’s overall tax liability. HKI Rummy will be issuing the tax deduction certificates showing the tax deducted for the player. However, HKI Rummy will not be able to refund the excess TDS from our end directly to any Player.

4. How can I get my tax certificate to file IT Returns?

Tax Certificates will be issued within 3 months from the last date of filing TDS returns for every quarter.