What is Government Tax (TDS) and when is it charged?
As per Income Tax guidelines on Online gaming by the government of India, if you make any game profit within a financial year between April – March, then 30% tax shall be applicable on you and will be deducted at the time of withdrawal from the user’s wallet. Any tax payment that is pending will be deducted at the end of the financial year that is after the end of 31st March.
Net Winnings = (Total Withdrawal in the Financial Year) – (Total Deposits in the Financial year) – Year Starting Wallet balanceÂ
If you have not made any profits within the year then Tax will not be deducted. Tax deducted is deposited to the Government within 3 to 5 months against PAN details submitted by you to WinZO.
Why has Government Tax (TDS) been deducted on 31st Mar?
As per Government rules, if total applicable Tax on your game profits has not been deducted, then the remaining TDS will be deducted from your wallet balance at the end of the financial year which ends on 31st Mar. This tax will be deposited to the Government against your PAN by 15th June.
Will I be charged Government Tax (TDS) on this balance again during withdrawal?
Tax is only deducted on your profits within the financial year. Since all the deductions for the previous financial year which ended on 31st March 2024 have been completed, no additional tax will not be charged again on your profits of the previous year. Your game profits for the new financial year starting from 1st April will be calculated separately and tax on those will be deducted when you withdraw.
Can I claim a refund for this Tax?
Tax deducted is deposited by WinZO on behalf of the user against their PAN number to the Income tax department of the government. Users can check the TDS balance on TRACES website of Government of India (https://contents.tdscpc.gov.in/). You can claim this TDS balance at the time of filing of Income Tax returns. Please contact your Chartered Accountant to know the process of filing.
How to check and download a TDS certificate?
TDS certificates will be provided within 5 months of Tax being deducted. This can be checked on the Traces portal (https://contents.tdscpc.gov.in/) and also on the app in the Transaction History (Download TDS certificate button).
Date of issue of TDS certificate
- Q1 – April 23 to June 23 – August 15th
- Q2 – July 23 to Sept 23 – November 15th
- Q3 – Oct 23 to Dec 23 – February 15th
- Q4 – Jan 24 to Mar 24 – June 15th
If you haven’t registered on TRACES, you need to register as a User (Click here for detailed steps). After creating an account you can download the TDS statement from TRACES website (Click here for detailed steps).
How to claim TDS if my PAN has not been submitted?
If you have not submitted the PAN details, you can add them on the Settings page under KYC Details in the WinZO Application. PAN shall be added within 7 days of TDS deduction. Tax amount will be deposited against this PAN number.
