TDS Information for A23 Users


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 FYA - (B + C)
Net winnings** at the time of each subsequent withdrawalA - (B + C + D)
Net winnings at end of the F.Y(A + E) - (B + C + D)
Where:
  • A = Total Withdrawal during the F.Y
  • B = Total Deposits during the F.Y
  • C = User Opening balance at the beginning of the F.Y
  • D = Net winnings for which TDS is already paid during the previous withdrawal**.
  • E = User Deposit balance at the end of the F.Y
*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.