TDS
Complying with the requirements of newly introduced TDS provisions on online gaming by the Finance Act, 2023, we have updated our TDS policy effective from 1st April 2023. The following TDS policy will apply to all the users:
The company will deduct TDS at a rate of 30% on the net winnings of the users at time of withdrawal and at the end of the financial year ('F.Y').
For the purpose of TDS calculation net winnings definition would be:
| Net winnings* at the time of first withdrawal in FY | A - (B + C) |
| Net winnings** at the time of each subsequent withdrawal | A - (B + C + D) |
| Net winnings at end of the F.Y | (A + E) - (B + C + D) |
Where:
| |
*Net winnings shall be zero, if the sum of amounts B & C is equal to or greater than the amount A. **Net winnings shall be zero, if the sum of amounts B, C and D is equal to or greater than the amount A. | |
1) Users must provide their valid PAN details and a copy of their PAN card before their first withdrawal, as required by the Terms & Conditions. Failure to provide PAN will result in the inability to withdraw winnings.
2) If users fail to provide valid PAN details or a copy of their PAN card by the end of the financial year, the company will deduct tax at source on net winnings as of the end of the financial year and remit the amount to the government authorities on a no- name basis.
3) The Company reserves the right to amend / modify this Policy at any time in line with applicable rules and provisions of the Income Tax Act, 1961 as amended from time to time without giving any prior notice to the users.
As per the Finance Act 2023, all Real Money Gaming Apps are mandated to deduct tax at the rate of 30% on users' Net Winnings at the time of withdrawal or on 31st March (i.e. end of Financial Year).
You can find the same in your "Transaction Summary" under the "TDS Applied" filter.
At the end of the Financial Year (i.e. 31st March), if you have any amount remaining in your A23 Wallet, tax will be deducted on that amount considering it as "withdrawal". The remaining amount will be carried forward to the new Financial Year (i.e. 1st April).
Any net winnings on which TDS is already paid at any earlier withdrawals in that financial year would be reduced while computing net winnings at the time of withdrawal.
If your net winnings reduce or become negative at the end of the financial year, you can file your tax returns and claim refunds from the income tax department depending on your overall tax liability. For more information, please contact your tax adviser.
A23 will provide the TDS Certificates so you can file your tax returns. However, A23 will not refund any excess TDS to the players.
You can download the TDS Certificate by clicking on the 'Download TDS' option in the profile page in A23 App.
PAN details is mandatory for placing a redeem/withdraw starting from 1st April 2023. Please complete the PAN verification process before placing a request to withdraw.
TDS deduction purely depends on net winnings. If you have positive net winnings, TDS will be applicable. Please check your account summary for the details of net winnings at both redeems.
A23 Games is India's Leading Online Gaming Portal completely owned and operated by Head Digital Works Private Limited. With a mission to promote online gaming in India, A23 Games is steadily providing a platform for a community of skilled gamers all over the country.
With 15+ years of pioneering experience in this space, we at A23 Games understand the needs of online gaming in India and strive to provide better and faster results as well as a significantly improved gameplay experience.
And with Responsible Gaming at the core of our ideologies, our objective as an industry veteran is to provide you a platform that is "purely a source of entertainment". We want to make sure players are here for the right reasons.
At the heart of our operations is a team of remarkable individuals who help steady the ship in the right direction. Our team is a diverse mix of young entrepreneurs as well as an able and experienced team of industry stalwarts who are masters of their domains.
And with state-of-the-art software created on a custom-built architecture to be robust in operating Multi-Player Tables and Online Tournaments, we have a dream combo in place.
A well-oiled machine that has helped us embark on this journey and to consistently deliver at a very high level for the entirety of our tenure.
