Taxation on Striker
As per the new TDS policy, all gaming applications must deduct a tax of 30% on the users’ net winnings made by playing real-money online games. These guidelines will be in effect from the financial year 2023–24.
If you actively play on Striker, here’s everything you need to know about the new TDS policy.
What were the Tax rules before?
As you might be aware by now, the government has revised TDS policy for fantasy and other online gaming applications. Earlier, you had to pay 30% TDS only on every winning that was more than Rs 10,000.
Why and when TDS is applicable?
- As per the new TDS law, defined in the Finance Act, 2023, effective 1st April 2023, TDS will be deducted at 30% of your taxable amount (profits/net winnings) at the time of withdrawal.
- Your taxable amount (profits/net winnings) is defined as a difference between your withdrawals and deposits. If the difference is negative no tax will be charged.
- The formula for calculating the taxable amount at any withdrawal is as follows:
A — Total Withdrawals in the current FY (Financial Year — 1st April to 31st March is defined as a Financial Year)
B — Total Deposits in the current FY
C — Opening Balance at the start of FY
D — Amount on which tax has already been deducted in the current FY
Taxable Amount = A — B — C — D
TDS (Only if Taxable Amount > 0) = 30% of Taxable Amount
What’s different for Striker?
- Only for Striker users, this revised TDS policy is applicable from 12th May, 2023 and would not impact your current balance.
- You will NOT have to pay the TDS accumulated from 1st April, 2023 to 12th May, 2023 12:20 PM for your account.
- Striker wouldn’t charge anything extra to its users.
Let’s look at examples for TDS:
Aryan is an active user who frequently deposits money, participates in gameplay, trading and withdraws money frequently.
Aryan makes 3 withdrawals from the system and the 1st withdrawal is his first withdrawal for current FY.
P.S: There is no tax on the withdrawal of unused deposits. There is no tax if you have made zero profits
Government Notification Document -
FAQs
1. What is the new TDS law which is applicable effective 1st April 2023?
The new Govt, Tax (TDS) law, as defined in the Finance Act, 2023, is applicable from 1 April 2023. According to the law, 30% of your taxable amount (i.e. net winnings) is deducted as TDS on withdrawal.
Previously any winnings greater than INR 10,000 was taxed directly @30%.
As per the new law when the user will try to withdraw the money to their bank account, system will look at the net winnings in the withdrawable amount and accordingly calculate the TDS for the respective withdrawal
If there the net winnings are 0 or in negative then no TDS will be applicable at the time of withdrawal
2. Is there any minimum threshold for TDS deduction?
There is no minimum threshold for TDS deduction. If you have any winnings which are being withdrawn then TDS will be charged @30% at the time of withdrawals on the taxable amount
3. How TDS is calculated as per the new rule?
The formula for calculating the taxable amount at any withdrawal is as follows:
(A) Total Withdrawals in the current FY (Financial Year — 1st April to 31st March is defined as a Financial Year)
(B) Total Deposits in the current FY
(C) Opening Balance at the start of FY
(D) Amount on which tax has already been deducted in the current FY
Taxable Amount = (A) — (B) — (C)— (D)
TDS (Only if Taxable Amount > 0) = 30% of Taxable Amount
4. How the TDS calculation will happen as per the new TDS guidelines and how it is different from the previous TDS calculation guideline
Check the examples listed above in the blog to understand how taxation works
5. If I am having net losses will I have to pay any TDS?
No, TDS will be applicable in case of losses at the time of withdrawal
6. Where can I check the TDS being charged on my withdrawal?
On the withdrawal screen, just below the bar where you fill the withdrawal amount there is a “Know more” CTA. Once you click on the same it shows next screen where your TDS details for the respective transaction are shown
7. If I don’t withdraw my winnings (profits) will I have to pay any TDS?
Please note TDS will be only charged when you withdraw your winnings to your bank account. If no money is withdrawn then no TDS will be charged.
However at the end of Financial year (31st March), TDS will be automatically deducted on the net winnings present in your usable balance on the platform. Please note this is as per the TDS guidleines issued by Government of India (GOI)
8. What will happen if I end up paying extra TDS?
If you have paid additional TDS please don’t worry. You can claim the refund while filing your ITR.
Make sure to get your TDS certificates from our support team. The TDS certificate is available for each quarter.
For ex. The TDS that you will pay for the quarter April — June 23, TDS certificates for the same will be available one and a half months after quarter end i.e. by 15th August 23
Similarly if for TDS paid during the quarter July — September 23, TDS certificates for the same will be available one and a half months after quarter end i.e. by 15th November 23
Please note: Your PAN number is mandatory for getting a TDS certificate. If PAN number is not submitted then TDS certificate will not be provided for the respective TDS deduction.
9. What is Opening Balance? How it is calculated?
Opening balance is the amount of usable balance present in your account as of 31st March EOD 11:59 PM. This balance will be treated as opening balance for the next year from 1st April onwards.
For the current FY, the opening balance will be the usable balance present in our account as of 12th May, 12:20 PM.
10. Is there any video that will help me understand taxation better?
You can watch this video to know how Taxation will work in Striker — https://youtu.be/TVUBXfOTrIs
