As per the provision of the Finance Act, 2023, the following TDS policy will be applicable to all the users of Rummy24 from 01st April 2023.

1) TDS will be applicable at the time of withdrawal by the user from his/her wallet.

2) TDS will be deducted @ 30% on positive "Net Winning"* at the time of withdrawal.

3) TDS is also applicable at the end of the financial year on 31st March wallet balance by considering it as withdrawal amount by the user. After applying TDS on the balance of, the remaining amount will be carried forward to the next financial year as a deposit balance and TDS would not be applicable on the same.

Net Winning: - Cumulative withdrawals during the year – Cumulative amount deposited by the user during the year – Deposit balance at the beginning of the year – Winning balance at the end of the preceding year – Total Invested amount in running matches.

Scenario 1:

You have a balance of ₹1,000 in your account on 24 Mar, 2023 and you decide to withdraw on 6 Apr, 2023. On 1 Apr, 2023, ₹1,000 will be considered as your year opening balance which will be considered as a deposit in TDS calculation. No TDS will be applicable as your net winnings are ₹0.

Example: Total withdrawals
₹1,000
Total deposits
(same as opening balance which is ₹1,000)
₹1,000
Net winnings
(₹1,000 - ₹1,000 = ₹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 ₹2,000 as on 1 Apr, 2023 and have deposited ₹5,000 on 2 Apr, 2023.

Example: Total deposits
Opening balance
(As of 1 Apr, 2023)
₹2,000
Deposit
(Deposited on 2 Apr, 2023)
₹5,000
Total deposits
(₹2,000 + ₹5,000 = ₹7,000)
Now, if you are withdrawing ₹5,000 on 3 Apr, 2023, here's how the TDS calculation will work.

Example: Total withdrawals
₹5,000
Total deposits
₹7,000
Net winnings
-₹2,000
TDS applied
₹0 (As net winnings is negative)
In this case, no TDS was applied as the net winnings are negative.

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 ₹10,000 and have also had an opening balance of ₹5,000 at the start of this financial year. So now, your total deposit balance stands at ₹15,000 (₹10,000 + ₹5,000).

Example: Total deposits
Opening balance
₹5,000
Deposit
₹10,000
Total deposits
(₹5,000 + ₹10,000 = ₹15,000)

In the same financial year, you have completed a withdrawal of ₹10,000. And on 30 Apr, 2023, you wanted to withdraw an additional ₹6,000. So, with this withdrawal, your total withdrawal stands at ₹16,000 (₹10,000 + ₹6,000).

Example: Total withdrawals
Withdrawal on 20 Apr, 2023
₹10,000
Withdrawal on 30 Apr, 2023
₹6,000
Total withdrawals
₹16,000

In this case, on your withdrawal request of ₹6,000, TDS will be applied to the net winnings of ₹1,000 (₹16,000 - ₹15,000) at a rate of 30%. However, no TDS will be applied to the remaining balance of ₹5,000. After deducting ₹300 TDS, ₹5,700 will be credited to your account.

Example: Withdrawal amount
₹6,000
Amount eligible without tax
₹5,000
Taxable amount
(₹6,000 - ₹5,000 = ₹1,000)
TDS on taxable amount @30%
(₹1,000 * 30% = ₹600)
Amount to be credited to your
bank account
(₹6000 - ₹300 = ₹5,700)

Scenario 4:

Let assume that you have paid TDS on the initial winnings during the financial year, but your net winnings have reduced subsequently. In this case on 10 Apr, 2023, following will be the TDS calculation in your account:

Example: Total withdrawals
₹10,000
Total deposits
₹5,000
Net winnings
₹5,000
TDS applied till date
₹1,500

After this, on 30 May, 2023 your deposit reaches ₹15,000 (₹5,000 balance till 10 Apr + ₹5,000 additional amount deposited from 10 Apr to 30 May) Total withdrawals in the financial year = ₹10,000 Net winnings in the financial year = ₹10,000 - ₹10,000 = ₹0

TDS calculation as on 30 May, 2023
Total withdrawals
₹10,000
Total deposits
₹10,000
Net winnings
(₹10,000 - ₹10,000 = ₹0)

In such a case, subject to applicable law, the excess TDS which you have already been paid & the same you can applied for claim as a refund during your annual income tax filing.

Scenario 5:

At the end of the financial year, if you have any amount which is left in your wallet (excluding the amount on the table), then TDS will be applied to that particular 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 assume that:
Total deposits in the financial year = ₹10,000
Total winning in the financial year = ₹20,000
So your Net Winning as on date 31 Mar 2024 = ₹10,000 (₹20,000 - ₹10,000 = ₹10,000)
Account balance at the end of 31 Mar, 2024 = (₹10,000 + ₹10,000 = ₹20,000)

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

Total withdrawals ₹0
Closing balance on 31 Mar 2024 ₹10,000
Total deposits
₹10,000
Net winnings
(₹20,000 - ₹10,000 = ₹10,000)
Taxable net winnings
₹10,000
TDS on taxable amount @30%
(₹10,000 * 30% = ₹3,000)
Thus, TDS of ₹3,000 is applied to your account balance at the end of 31 Mar, 2024 and the remaining balance of ₹17,000 (₹20,000 - ₹3,000) 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 ₹17,000.

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.