As per the Union Budget 2023, the Government of India passed a Finance Bill that contains new tax laws for Online gaming from the financial year 2023-24. As per the laws in the bill, it is mandatory for online gaming to deduct Tax at source whenever a player makes a withdrawal and also at the end of the financial year. TDS will be levied at 30% of all the ‘Net Winnings’ of the player.
TDS is Tax Deducted at Source. Whenever a player takes withdrawal, a 30% tax is deducted only from the ‘Net winnings’ of the player.
As per the income tax regulations, individuals or organisations who are obligated to make payments of a specified nature to another party are required to deduct tax at source and remit the corresponding amount to the Central Government. Subsequently, a TDS certificate is issued by the entity responsible for deducting the tax at source.
Net Winnings refer to the difference between the overall amount of money a player has withdrawn and the deposits they have made. Thus,
Net Winnings = Total Withdrawals – Total Deposits
Total Deposits are calculated as all deposits done in the current financial year plus the opening balance of the financial year. Whereas, Total Withdrawals are calculated as all the withdrawals done in the current financial year. Any net winnings which have already suffered TDS at the time of any previous withdrawals would also be subtracted while calculating the Net winnings at the time of the next withdrawal.
Let us take an example: A player deposits Rs. 10,000 in the RummyVerse wallet on 10 May 2023. His opening balance on 1 April 2023 was Rs. 5,000. He plays cash games and he wins Rs. 30,000 overall which gets deposited in his Withdrawal balance. From that money, he requests a withdrawal of Rs. 25,000 on 25 May 2023. In this case, his net winnings will be:
25,000 – (10,000 + 5,000) = 10,000.
Now on this Rs. 10,000, RummyVerse will levy a TDS of 30%. So the TDS amount will be Rs. 3,000 in this case. Now the player will get 25,000 – 3,000 = Rs. 22,000 in his Bank account.
Note: At the start of every financial year, the Net winnings will get Reset.
To file the IT Returns, the players will get Tax Certificates within one month from the final date of filing TDS returns for each quarter.
In the event of winning non-cash prizes such as cars, bikes, gadgets, and similar items from RummyVerse, it is necessary to pay a 30% TDS (Tax Deducted at Source) to RummyVerse before receiving the prize. RummyVerse will handle the remittance of the TDS to the government on your behalf and subsequently provide you with a TDS certificate.
Effective from October 1st, 2023, the Government of India has amended the National GST Laws to impose a 28% GST on all deposits made on Online Money Gaming Platforms.
To ensure that our users enjoy an uninterrupted gaming experience, RummyVerse will bear the cost of GST on all deposits.
Please note that this is a limited-time offer, which may be subject to changes in the future.
Withdrawals without gameplay are generally not entertained. However, in some cases, if a withdrawal request is approved, the user will be charged 5% of the total amount, in addition to 28% GST on the deposited amount, to process the withdrawal.