In accordance with the relevant provisions of Income Tax Act, 1961 the company shall deduct TDS at the rate as may be applicable from time to time .
- All withdrawals and / or balance(s) in the user account shall be subject to deduction of TDS under the provisions of the Income Tax Act, 1961.
- TDS will be deducted at 30% on (i) net winnings comprised in any withdrawal from the user account, and (ii) remaining amount of net winnings in the user account at the end of the financial year. Rate of TDS as well as the manner of computation thereof shall be as per applicable legal provisions and are subject to change without any prior notice or intimation to the user. For Simplification and illustration purposes appended herewith is the formulae which shall be applicable for withdrawals during the year. TDS shall be applicable on that portion of the withdrawal which is Net Winnings:
Net Winnings in case of Withdrawal = A – B – C – D; Where,
A = Aggregate withdrawals from the user account during the existing year till the date of withdrawal, other than any amount, by whatever name called, not in the nature of winnings from playing online game paid by the online gaming intermediary to the user account.
B = Aggregate amount deposited in the user account during the year up to the date of withdrawal.
C = Balance in the user account at the beginning of the year, including both deposits made by players and the winnings from playing games and excluding the bonus given to players.
D = Winnings comprised in earlier withdrawals made from the user account in the current year, on which TDS was deducted in accordance with the provisions of the section 194 B. Note -In case the TDS applicable on net winnings at the time of withdrawal is lower than the TDS already paid during the year, no TDS will be applied and the player may claim the refund of the said TDS at the time of filing their annual returns with Income Tax.
- We reserve our right to modify/change/amend the above terms in the event of any change in applicable law, any amendment to the legal provision, issuance of clarification by the authorities, pronouncement of any relevant court judgement, etc.
To better understand how the TDS policy applies to different scenarios, we’ve prepared a few examples below:
Scenario 1: At the time of withdrawal, 30% TDS will be deducted from your net winnings. In case deposits are higher than withdrawals making the net winnings 0 there may not be any TDS in that scenario as explained below.
|Total withdrawal in the financial year||₹20,000|
|Total deposits made in the financial year||₹35,000|
|Withdrawal requested for||₹4,000|
|Amount credited to your bank account||₹4,000|
In this scenario your total withdrawals are less than total deposits in the financial year, so there won’t be any TDS deductions.
Scenario 2: Withdrawal is greater than deposits and includes part of net winnings.
|Total withdrawal in the financial year: (A)||₹20,000|
|Total deposits made in the financial year: (B)||₹25,000|
|Withdrawal requested for: (C)||₹15,000|
|Total withdrawal: (A+C)||₹35,000|
|Net winnings: (A+C-B)||₹10,000|
|TDS amount: (D)||₹3,000|
|Amount credited to your bank account: (C-D)||₹12,000|
In this scenario your total withdrawals are greater than total deposits in the financial year, so 30% TDS will be deducted on net winnings of ₹ 10,000.
Note: If you leave money on the table at the end of the financial year, it won’t be included in the starting balance for the following year.
Scenario 3: During the financial year, you paid TDS on your initial earnings; however, after that, your net winnings have decreased.
|Total withdrawals in the financial year||₹20,000|
|Total deposits in the financial year||₹20,000|
|Net winnings in the financial year||₹10,000|
|TDS paid till date||₹3,000|
After this, if your net winnings drop to 5,000, you may claim a refund for the excess TDS that was deducted in your yearly income tax filing.
In conclusion, while the TDS policy might not be the most thrilling topic to explore, it is crucial to understand its implications on your gaming experience. Being aware of the TDS rules can help you make more informed decisions about your withdrawals and potentially save you from any unwanted surprises related to your finances.
1. What happens if I don’t make any withdrawals during the financial year?
The net winnings at the end of the financial year will be subject to TDS at 30%, which will be deducted from your winnings balance.
2. Will my account balance, held till 31 March 2023, also get affected?
No, your account balance holdings before 1 April 2023 will not incur TDS deduction as per the new update.
3. Is there any threshold amount above which the TDS will be deducted?
No, TDS will be deducted on net winnings on every withdrawal amount or on net winnings at the end of every financial year.
4. What happens if I have net losses?
No TDS will be applicable in case of net losses at the time of withdrawal or at the end of the financial year.
5. What if I end up paying extra TDS?
Don’t worry; you can claim your TDS refund when filing your Income Tax Returns (IT) for that financial year. Make sure you have your TDS certificates send by HalaPlay in your mail.
6. What happens to the TDS deducted from my winnings?
HalaPlay will deposit the TDS amount with the Income Tax Department against your PAN Card number. Hence, it is mandatory that you provide us with your correct PAN card details so that you can claim the TDS benefit while filing your tax returns.
7. Do I get TDS certificate for the TDS deducted?
Yes, we will issue TDS certificate for the amount of TDS deducted from your account.
8. When do I get the Certificate?
You will get the TDS certificate at the end of every quarter in the Financial year (April 1 to March 31) we deposit the TDS once every quarter and the TDS certificate is issued by the end of next quarter. So, for any TDS amount deducted in Jan/Feb or March, you will get the certificate by the end of next quarter (May/June).
9. How to get TDS certificate?
The TDS certificate is sent by our Support team to your registered email address. You can also get a copy of the certificate on request, in-case you change your registered email address, please keep us informed.
10. Still have questions/doubts?
You can send an email to email@example.com for any doubts/queries you may have regarding this matter.