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HiScore Poker Keeps TDS Woes At Bay!

Haven’t we all waited long and hard to get clarity on the taxation applicable on real money games? But the wait on Tax Deducted at Source (TDS) was over when the Union Budget 2023 was announced on 1st February 2023 by the Union Finance Minister, Nirmala Sitharaman.

The tax regime now demands a 30% tax on net winnings of a player. This tax is payable at the end of the financial year on net earnings of ₹10,000 and above. Keeping in line with the latest tax deduction provision, HiScore Poker implemented the new tax rules on its platform which is applicable starting 1st April 2023.

When was TDS introduced in poker?

TDS on poker winnings was introduced in the country in the year 2019. The Finance Act of 2019 brought poker along with other online games under Section 194B of the Income Tax Act, 1961. This law required the deduction of TDS 30% on any winnings which exceed ₹10,000 in a single game played.

When the Union Budget 2023 was announced, Sitharaman introduced a new provision under Section 194BA, to cover TDS specifically on net winnings from online games such as poker and brought the tax rate to 30%.

HiScore Poker – TDS Policy

The fast-growing online poker platform has mentioned clearly on its website that TDS will be applicable at the time of withdrawal and at the end of a financial year, players are liable to pay TDS on their wallet balance. This amount excludes the sum which is still in the contest and tables. Once the TDS is deducted the remaining sum will then get carried forward to the next financial year.

The wallet balance on HiScore Poker which is carried forward will be considered as the deposit for the following year and TDS won’t be applicable on that amount. HiScore Poker has put a simple formula in place. Take a look at how the TDS will be applicable on your net winnings.

Net winnings = Total withdrawals – Total deposits (financial year would be 1st April to 31st March). For example: If your total ₹1.50 Lakh and total deposits stand at ₹1 Lakh. The net winnings will be calculated as ₹1.50 Lakh – ₹1 Lakh which leaves you with ₹50K. This means a player will be eligible for a 30% tax on ₹50K. Let us take one more example to understand this tax deduction.

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If your total withdrawals stand at ₹10,000 and your total deposits are ₹20,000. You further withdraw another ₹14,000 then total withdrawal comes to ₹24,000. Then your net winnings are ₹4,000. A tax of 30% will be applicable on ₹4,000 which comes to ₹1,200. The remaining sum of ₹12,800 will be credited to your bank account.

Remember, if your net winnings are ₹6,000 then no TDS is applicable on that sum. But if you withdraw an amount of ₹10,000, then 30% tax will be deducted on the remaining ₹4,000 which comes to ₹1,200. 

Hopefully with the latest tax deduction regime, players will have more clarity on how TDS will be calculated on the sum they have invested and are planning to withdraw.

For more news and the latest updates in poker, keep reading Gutshot Magazine. Follow us on Facebook, Instagram, Twitter, and Telegram.

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