TDS POLICY

Games Pro India Pvt. Ltd. (“Games Pro“, or “we” or “our” or “us“) operates the RummyKhiladi platform, which includes a website and mobile application (together, “Platform“). This TDS Policy outlines the applicability, deduction, and compliance requirements concerning Tax Deducted at Source (TDS) as per the Indian Income Tax Act, 1961. By using the Platform and participating in Games, you (“User“ or “you“) agree to this TDS Policy. Please read this policy carefully, as it is an integral part of the Terms of Service. All terms not defined herein shall have the same meaning ascribed to them in the Terms of Service.

1. TDS Applicability

1.1 When TDS is applicable:

TDS is applicable on winnings from any online games, including Cash Games on the Platform, as mandated by Section 194BA of the Income Tax Act, 1961.

The deduction is triggered when your net winnings from a single transaction or cumulative winnings exceed the prescribed threshold in a financial year.

1.2 Current TDS threshold:

As of the date of this policy, TDS is applicable if your net winnings from the Platform exceed ₹10,000 in a financial year, or any other amount as prescribed under applicable tax laws.

1.3 Cumulative winnings and TDS:

Net winnings are calculated cumulatively across all transactions during the financial year. For example, if you win ₹7,000 in one game and ₹4,000 in another game, TDS will apply when the total winnings exceed ₹10,000.

1.4 Legal compliance:

GamesPro is obligated under Indian tax laws to deduct TDS on eligible winnings and deposit the deducted amount with the Income Tax Department on your behalf.

2. TDS Deduction Process

2.1 How TDS is calculated and deducted:

TDS is calculated at the rate of 30% (or any other rate as specified under applicable tax laws) on your net winnings after adjusting for the entry fee or stakes used for the specific game.

For example, if you win ₹15,000 in a game where your entry fee was ₹5,000, the net winnings will be ₹10,000, and TDS will be calculated on ₹10,000.

2.2 Timing of TDS deduction:

TDS will be deducted at the time of withdrawal of winnings from your RummyKhiladi Account. If you choose not to withdraw winnings and instead use them for further games, TDS may be deferred but will apply at the end of the financial year or as otherwise required by law.

2.3 PAN submission requirement:

To ensure accurate TDS deduction, you must provide a valid Permanent Account Number (PAN). If a valid PAN is not provided, TDS may be deducted at a higher rate, as mandated by Section 206AA of the Income Tax Act.

Failure to provide a PAN may also lead to limitations on withdrawals and other Platform functionalities.

2.4 Minimum balance for TDS deduction:

If your RummyKhiladi Account does not have sufficient funds to cover the TDS amount at the time of deduction, the balance winnings in your account may be adjusted to recover the applicable TDS.

3. TDS Certificate

3.1 Issuance of TDS certificates:

Once TDS has been deducted, you will receive a TDS certificate (Form 16A) within the timeline specified under applicable tax laws.

The TDS certificate will be issued against the PAN you have provided on the Platform and can be used for tax filing purposes.

3.2 Accessing your TDS certificate:

TDS certificates will be made available for download through your RummyKhiladi Account or sent to your registered email address.

4. Compliance and Reporting

4.1 Reporting to tax authorities:

GamesPro will report all TDS deductions to the Income Tax Department in accordance with statutory timelines and obligations.

The deducted TDS amount will be credited to your PAN in the government’s tax database, which you can verify using your Form 26AS.

4.2 Your responsibilities:

It is your responsibility to include the TDS amount and winnings in your income tax filings and pay any additional tax liabilities, if applicable.

GamesPro is not liable for any penalties or liabilities arising from your non-compliance with personal income tax filing requirements.

5. Non-resident Users

5.1 Applicability for non-resident Users:

For Users who qualify as non-residents under the Income Tax Act, TDS will be deducted as per the applicable rate for non-resident individuals.

Non-resident Users may also need to provide additional documentation, such as a Tax Residency Certificate (TRC), to claim benefits under a Double Taxation Avoidance Agreement (DTAA).

5.2 Compliance for non-residents:

Non-resident Users are advised to consult a tax advisor to ensure compliance with Indian tax laws and claim any eligible tax credits in their country of residence.