TDS Policy

• Starting from 1st April 2023, the Finance Act, of 2023 requires all the HiScore players to comply with the new TDS policy.

• TDS is applicable at the time of withdrawal.

• At the end of the financial year, players will be subject to a TDS deduction on their year-end wallet balance (excluding the amount on the table/contest) by considering it as a withdrawal amount. After applying TDS on the year-end wallet balance, the remaining amount will be carried forward to the next financial year as the starting balance.

• The carried forward balance will be considered a Deposit for the next year, and TDS will not apply for that amount. However, any further winnings from the carried forward balance will be subject to the 30% TDS deduction at the time of withdrawal.

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

To provide an example,

Suppose a player made deposits totaling Rs. 1,00,000 during the financial year from April 1, 2023, to March 31, 2024. They also made withdrawals totaling Rs. 1,50,000 during the same period. In this case, their net winnings for the financial year would be calculated as follows:

Net winnings = Total Withdrawals - Total Deposits

Net winnings = Rs. 1,50,000 - Rs. 1,00,000

Net winnings = Rs. 50,000

Therefore, in this case, the player's net winnings for the financial year would be Rs. 50,000, and they would be subject to a 30% tax deduction at source on this amount at the time of withdrawal.

Some scenarios to help you better understand the application of the TDS policy. Here are a few examples:

Scenario: 1

If a player's net winnings (including the withdrawal amount) are more than zero, then a TDS deduction of 30% will be made on the net winnings at the time of withdrawal.

Example:

In the above scenario, if you further withdraw ₹14,000, then:

Total withdrawals = 10,000 + 14,000 = 24,000

Total Deposits = 20,000

Net winnings = 24,000 - 20,000 = 4,000.

Zero TDS Withdrawal amount: Instead of ₹14,000, if you withdraw ₹10,000, then the net tax payable would be ₹0.

Total withdrawals = ₹10,000 + ₹10,000 = ₹20,000

Total Deposits = ₹20,000

Net winnings = ₹20,000 - ₹20,000 = ₹0

Scenario: 2

In this scenario, No TDS is applicable till your net winnings cross ₹6,000 (winnings already taxed):

Zero TDS Withdrawal amount:

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

If a player has paid TDS on their initial winnings during the financial year but their net winnings have reduced post that, then

Example:

The user has carried out the following transactions and has been charged ₹6,000 as TDS.

After the following transaction, the player has made a further deposit of ₹20,000, but the player’s net winnings has reduced to ₹0.

Then, subject to applicable law, the excess TDS deducted can be claimed as a refund in your annual income tax filing.

Scenario: 4

According to the TDS policy, if a player has money in their wallet at the end of the financial year (excluding the amount on the table/contest), TDS will be calculated on that amount as a withdrawal for the year.

The remaining amount will be carried forward to the next year as the starting balance. Withdrawals from the starting balance in the next financial year won't be subject to TDS, but if the player has net winnings during the next financial year, TDS will be calculated on the net winnings at the time of withdrawal.

Example:

In the above scenario, the following calculation is done:

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

Kindly Note:

• Important to note that the TDS policy is based on the understanding of the provisions as introduced or amended by the Finance Act, 2023. The company reserves its right to modify, change, or amend the TDS policy based on the law applicable at the relevant time.

• As the tax laws are subject to change from time to time, it is important for HiScore players to keep themselves updated on any changes to the TDS policy. The company will make every effort to communicate any changes to the policy in a timely and transparent manner.

Frequently Asked Questions