GST & TDS

GST & TDS

Why am I required to pay TDS on my winnings?

How can I check my TDS transactions?

When will I get my TDS certificate?

What will happen to my TDS if the withdrawal request is failed/rejected?

How TDS is deducted?

Is PAN Card mandatory?

Examples to understand TDS deductions in different scenarios:

Can you explain the updated GST regulation for online gaming platforms?

Is GST levied on entry fees for cash games or tournaments?

Will I get a GST invoice?

Is GST charged on the balance I withdraw?

If I possess a GST number, am I eligible for a discount?

How will I receive a refund for the GST amount I've paid?

I made a withdrawal request, however, the amount I received was lower than the amount I requested.

Is it possible to obtain a refund for the TDS (Tax Deducted at Source) that has been deducted if my 'Net Winnings' decrease over the course of the year?

Why am I required to pay TDS on my winnings?

TDS (Tax Deducted at Source) is a compulsory government requirement. According to the law, if you have net winnings in your account, you are obligated to pay TDS. The TDS deduction rate is 30% of your net winnings as per the applicable regulations. Deductions can be made either at the time of withdrawal or by the end of the financial year, whichever comes earlier.

When you initiate a withdrawal, the due TDS will be subtracted from your requested amount. This implies that the amount you receive in your bank account after the deduction will be your requested amount minus the relevant TDS amount.

Please Note: This has been submitted to the government and may be adjusted by them when you file your annual tax returns. Top

How can I check my TDS transactions?

To see your TDS (Tax Deducted at Source) transactions, follow these steps:

  1. Tap the menu icon (four lines) at the top right.
  2. Open the "Balance Summary" section.
  3. Click on "View Transactions."
  4. Choose "TDS" from the drop-down menu.

Please note: You can use the month-wise filter to see a detailed breakdown of the TDS payments made. Top

When will I get my TDS certificate?

The Rummy Passion team will provide you with a TDS (Tax Deducted at Source) deduction certificate on a quarterly basis.

Please note: This certificate will be sent to the email address you have registered with Rummy Passion. Top

What will happen to my TDS if the withdrawal request is failed/rejected?

In case the Withdrawal request is rejected, fails or is reversed by the player the amount which will be credited back to the player's account will exclude the due TDS amount for the particular withdrawal request.

For example, if the net win in the player’s account is INR 10000 cash and the withdrawal request of the same gets rejected/failed/reversed then the amount which will be credited to the player's Rummy Passion account will be INR 10000-30%(TDS) i.e. INR 7000. You can claim a refund while filing ITR if additional TDS is deducted at the end of the financial year based on overall net winning in the associated financial year. Top

How TDS is deducted?

Your net winnings are subject to tax deduction at source (TDS) which occurs when you withdraw funds or at the end of the financial year. TDS is calculated based on the formula: Net winnings = A - (B + C + E).

Definitions:

  • - Withdrawals (A): Total amount withdrawn from the user account during the financial year until the time of subsequent withdrawal, including the current withdrawal.
  • - Deposits (B): Total amount deposited in the user account by the owner during the financial year until the time of the subsequent withdrawal.
  • - Opening Balance (C): Account balance at the start of the financial year.
  • - Closing Balance (D): Account balance at the end of the financial year.
  • - Net Winnings (E): Net winnings included in earlier withdrawals during the financial year till the time of the subsequent withdrawal if tax has been deducted on those winnings.

Example:

Let's say a user withdraws ₹7,000 on April 13, and then withdraws an additional ₹10,000 on April 30, 2023. Here's how the TDS calculation would work:

1. Withdrawal on April 13, 2023 (A): ₹7,000

Net Winnings (A - (B + C + E)): ₹-8,000
Amount credited to the bank: ₹7,000
Balance in user account: ₹8,000
2. Withdrawal on April 30, 2023 (A): ₹10,000
Net Winnings (A - (B + C + E)): ₹2,000
TDS on net winnings @30%: ₹600
Amount credited to the bank: ₹9,400

In summary, the TDS calculation considers your withdrawals, deposits, opening balance, and net winnings to determine the TDS amount on your net winnings. Top

Is PAN Card mandatory?

Yes, having a PAN Card is mandatory. You'll only be allowed to withdraw your winnings after providing your correct PAN and Address Proof details. Once you request a withdrawal, we'll deduct the necessary TDS (Tax Deducted at Source) from the withdrawn amount.

It's important to note that we will verify your PAN details. If your PAN details are unverifiable, incorrect, or inaccurate during our verification process, we have the right to forfeit any winnings you've received. Additionally, if your PAN fails the verification, your withdrawal requests won't be processed.

If you haven't provided your PAN card or if it's rejected during verification, you won't be able to apply for TDS (Tax Deducted at Source), and you won't receive a TDS certificate for such cases. However, Rummy Passion will deposit the applicable TDS amount to the Income Tax Department in these situations. Top

Examples to understand TDS deductions in different scenarios:

Scenario 1: Positive Net Winnings at Withdrawal

If you have positive net winnings during withdrawal, we deduct 30% TDS from those winnings if TDS hasn't been deducted before.

Example:

  • - Withdrawable balance: ₹15,000
  • - Total net winnings to date: ₹11,000
  • - Withdrawal amount: ₹8,000

Calculation:

  • - Net Winnings: ₹8,000
  • - TDS @30%: ₹2,400
  • - Amount credited: ₹5,600

Scenario 2: No TDS if Previously Paid

If you've paid TDS in previous withdrawals, no TDS applies to net winnings on which TDS was already deducted.

Example:

  • - Redeemable balance: ₹6,000
  • - Total net winnings to date: ₹13,000
  • - Net winnings without TDS: ₹4,000
  • - Withdrawal amount: ₹6,000

Calculation:

  • - Net Winnings without TDS: ₹4,000
  • - TDS @30%: ₹1,200
  • - Amount credited: ₹4,800

Scenario 3: Negative Net Winnings

If you've paid TDS on previous winnings, but your net winnings turn negative, no further TDS is applicable. You can claim excess TDS as a refund when filing taxes.

Example:

  • - Redeemable balance: ₹7,000
  • - Total net winnings to date: ₹10,000
  • - Net winnings without TDS: ₹0
  • - Withdrawal amount: ₹7,000

Calculation:

  • - TDS @30%: ₹0
  • - Amount credited: ₹7,000

Scenario 4: Year-End Net Winnings

At the end of the financial year, TDS is calculated on undeducted net winnings. The remaining balance carries forward, exempt from next year's TDS.

Example:

  • - Account balance on Mar 31, 2024: ₹6,000
  • - Total net winnings to date: ₹14,000
  • - Net winnings without TDS: ₹5,000

Calculation:

  • - Net Winnings without TDS: ₹5,000
  • - TDS @30%: ₹1,500
  • - Remaining balance carried forward: ₹4,500 Top

Can you explain the updated GST regulation for online gaming platforms?

The government has introduced a new regulation that imposes a 28% Goods and Services Tax (GST) on funds added to online gaming platforms starting October 1, 2023.

However, you don't need to worry about it. Rummy Passion has covered that for you. Here is how it works - Let’s say you add ₹ 10,000 on Rummy Passion using bonus code NOGST.

Deposit Amount = ₹ 10,000 / 128% = ₹ 7812.5

GST Amount = 28% of Deposit Amount = ₹ 2187.5 (28% of ₹ 7812.5)

Cash Bonus added by Rummy Passion = ₹ 2187.5

You can use the Cash Bonus to play cash games and tournaments.

Note - Cash Bonus is not disbursed if NOGST bonus code is not applied.

Is GST levied on entry fees for cash games or tournaments?

Effective 1st October 2023, the Goods and Services Tax (GST) is charged solely on the funds you deposit into your account, not on the entry fees for joining cash games or tournaments. Top

Will I get a GST invoice?

Yes, Rummy Passion shall issue GST-compliant invoices which are available upon the player's request. To obtain your GST invoice, please reach out to us at support@rummypassion.com or call us on 8000000036, and we will arrange to provide it to you. Top

Is GST charged on the balance I withdraw?

No, GST is only levied on the funds you add to your account, not on the balance you withdraw. Top

If I possess a GST number, am I eligible for a discount?

GST credits are not available for individuals, they are only applicable to business entities in relation to the GST paid. Top

How will I receive a refund for the GST amount I've paid?

No, the GST collected is on behalf of the government, therefore it is not refundable. Top

I made a withdrawal request, however, the amount I received was lower than the amount I requested.

Starting from April 1st, 2023, it is mandatory for online gaming platforms in India to withhold a 30% Tax Deducted at Source (TDS) on the net winnings of their users.

This deduction will take place either during withdrawals or at the end of the financial year. For more information, please click on the following link: Click Here. Top

Is it possible to obtain a refund for the TDS (Tax Deducted at Source) that has been deducted if my 'Net Winnings' decrease over the course of the year?

Deducted TDS is submitted to the Income Tax Department against your PAN Card number. Players can file returns with the income tax department and claim refunds subject to the player’s overall tax liability.

Rummy Passion will be issuing all required certificates for doing so. However, we will not be able to refund the excess TDS from our end directly to any player. Top