Khel Ludo – TDS Policy

Effective From: Financial Year 2023–24

Applies to: All users of Khel Ludo platform as per Indian Tax Laws

In Accordance With: Finance Act, 2023 (Section 194BA)

1. Policy Overview

As per the Finance Act 2023–24, a 30% TDS is applicable on Net Winnings at the time of withdrawal or at the end of the financial year (31st March). Khel Junction ensures this is deducted and deposited with the Government of India, while maintaining transparency and compliance for all users.

2. Applicability of TDS

• TDS is only deducted on Net Winnings, not on the total withdrawal amount.
• TDS is applicable:
  • At the time of withdrawal
  • And/or on 31st March (financial year-end settlement)

⚠️ Note: This policy may be updated in line with future government directives.

3. What are Net Winnings?

Formula:

Net Winnings = Total Withdrawals – Total Deposits – Opening Balance (as on April 1st)

4. TDS Deduction Scenarios

📌 Case A – Positive Net Winnings

• Withdrawal: ₹10,000
• Deposits: ₹3,000
• Opening Balance: ₹5,000
• Net Winnings = ₹2,000 → TDS = ₹600
• Amount Credited = ₹9,400

📌 Case B – No Net Winnings

• Withdrawal: ₹5,000
• Deposits: ₹3,000
• Opening Balance: ₹5,000
• Net Winnings = -₹3,000 → TDS = ₹0
• Amount Credited = ₹5,000

5. Multiple Withdrawals in a Year

Net Winnings are recalculated at each withdrawal. TDS already paid is adjusted in future transactions.

Example:

• Opening Balance = ₹5,000
• Deposits = ₹3,000 + ₹2,000
• Withdrawals = ₹10,000 (1st), ₹5,000 (2nd)
• Total Net Winnings after 2nd withdrawal = ₹5,000
• TDS payable = ₹1,500
• Already deducted = ₹600
• Additional TDS = ₹900

6. Decrease in Net Winnings

If your Net Winnings turn negative later, you may:

• Withdraw up to the value of previously paid TDS without deduction
• Or claim a refund while filing ITR

Example:

• TDS already paid = ₹600
• Future net winnings = -₹2,000
• You can withdraw ₹2,000 tax-free

7. Year-End TDS Settlement (31st March)

Your balance is treated as withdrawal. Final Net Winnings are computed and taxed (if positive).

Formula:

Net Winnings = (Withdrawals + Account Balance on 31st March) - Total Deposits - Opening Balance

TDS is applied once on final Net Winnings. Any balance after deduction becomes Opening Balance for next FY. Winnings already taxed will not be taxed again.

Frequently Asked Questions (FAQs)

• What is TDS? Tax Deducted at Source – a mandatory deduction under Indian tax law on eligible earnings like game winnings.
• What is the TDS rate? A flat 30% on Net Winnings as per Section 194BA.
• Has the Net Winnings calculation changed? Yes. From FY 2023-24 onwards, the formula is:

  Net Winnings = Total Withdrawals + Closing Balance – Total Deposits – Opening Balance

• I earn below taxable limits. Do I still pay 30%? Yes. TDS is independent of your annual income. However, you can claim a refund while filing ITR.
• Is PAN mandatory? Yes. PAN is required to withdraw winnings and get your TDS certificate.
• What if I don’t have PAN? You won’t be allowed to withdraw your winnings from Khel Ludo.
• How do I get my TDS certificate? TDS certificates are issued within 45 days after the end of every financial quarter.
• Why does TDS vary across withdrawals? Because it depends on Net Winnings, Withdrawals, Deposits, Opening Balance, and TDS already paid.
• Where can I track my TDS deductions? In the ‘Tax Sheet’ section of your Khel Ludo profile.
• How can I check if TDS is paid to the government? Via your official TDS certificate, issued every quarter.
• Can I claim excess TDS? Yes. Claim it in your Income Tax Return (ITR) using the certificate provided.
• Can I get a refund from Khel Ludo? No. Refunds are only handled by the Income Tax Department.
• What happens on 31st March? Your balance is added to total withdrawals, Net Winnings are recalculated, TDS applied (if >0), and remaining becomes next year’s Opening Balance.

For further clarification or assistance, please reach out to support@kheljunction.co

Stay informed, stay compliant. Happy Gaming!