In line with the provisions contained in Finance Act, 2023, following TDS policy is applicable for all players on Color Rummy from 1 Apr, 2023.

• TDS is applicable at the time of withdrawal or deposit refund.

• 30% TDS is applicable on any positive net winnings at the time of withdrawal

• TDS is also applicable at the end of financial year on year end withdrawal balance by considering it as a withdrawal amount. Post applying TDS on the remaining balance (as per policy), the remaining amount will be carried forward to the next financial year as starting balance. Carried forward balance will be considered as investment for next year and TDS would not be applicable for that amount.

  Here, Net winnings = Total Withdrawals - Total Deposits (in a financial year). Apr 1 to Mar 31 duration is considered a financial year.

  Please note that the TDS Policy is based on the understanding of the provisions as introduced/ amended by Finance Act, 2023 and the Company reserves its right to modify/ change/ amend the TDS Policy basis law applicable at the relevant time.

  Find below a few scenarios to understand application of the aforementioned TDS Policy.

  Scenario 1:

  If your net winnings (including the withdrawal amount) is more than 0, then 30% TDS will be deducted on the net winnings at the time of withdrawal.

  Example:

  Total withdrawals in the financial year (A)	₹5,000
  Total deposits in the financial year (B)	₹10,000

  In the above scenario, if you want to withdraw ₹7,000 , then:

  Net Winnings	₹2,000
  TDS on taxable amount @30%	₹600
  Amount credited to your bank account	₹6,400

  Scenario 2:

  If you have paid TDS in previous withdrawals, then no TDS is applicable on withdrawals till your net winnings cross the amount for which you have already paid TDS.

  Example:

  Total withdrawals in the financial year	₹20,000
  Total deposits in the financial year	₹20,000
  TDS paid in the financial year (TDS paid on winnings of ₹6,000 as initially you had positive net winnings of ₹6,000)	₹1,800

  In this scenario, No TDS applicable till your net winnings crosses ₹6,000 (winnings already taxed) : if you withdraw up to ₹6,000, no TDS is applicable. If you withdraw ₹10,,000, then 30% TDS is applicable only on ₹4,000 winnings i.e. ₹1,200.

  Scenario 3:

  You have paid TDS on initial winnings during the financial year but your net winnings have reduced post that.

  Example:

  Total withdrawals in the financial year	₹40,000
  Total deposits in the financial year	₹40,000
  Net winnings in the financial year	₹20,000
  TDS paid till date	₹6,000
  Post this, if your net winnings reduces to ₹10,000, then, subject to applicable law, the excess TDS deducted can be claimed as refund in your annual income tax filing.

  Scenario 4:

  At the end of the financial year, if you have withdrawal balance in your account, then TDS will be calculated on that amount by considering it as a withdrawal of the financial year and remaining amount will be carried forward to next year as starting balance. Withdrawal from starting balance will not be subject to TDS in the next year.

  Example:

  Total withdrawals in the financial year	₹40,000
  Total deposits in the financial year	₹40,000
  TDS paid till date (on winning amount of ₹5,000 as initially you had positive net winnings of ₹5,000)	₹1,500
  Account balance at the end of Mar 31, 2024	₹30,000

  In the above scenario, following calculation is done:

  Total withdrawals in the financial year	₹70,000
  Total deposits in the financial year	₹40,000
  Net winnings	₹30,000
  New winnings already taxed	₹5,000
  Taxable net winnings	₹25,000
  TDS @30%	₹7,500

  Thus, ₹7,500 TDS is deducted from your withdrawal balance at the end of Mar 31, 2024 and remaining balance of ₹22,500 will be carried forward to the next financial year as deposit amount. You will not have to pay TDS in the next financial year on withdrawal out of this amount.