MPL Poker TDS Policy
Here are the important guidelines regarding the MPL Poker TDS calculation on your poker winnings. These changes are based on the current understanding of Section 194BA of the Income Tax Act, 1961 (‘the Act”). These might be subject to change per the rules to be notified under the Act.
MPL’s TDS Policy
No TDS will be applicable when a user transfers money from Poker wallet to MPL wallet.
TDS will be applicable whenever the net winnings are positive at the time of withdrawal and amount is being withdrawn from MPL wallet to their bank account /wallet ( TDS is applicable only on the net winnings in withdrawal).
Net Winnings are the total amount in your wallet (including winnings) minus the deposits made by you.
Net Winnings = Cumulative Withdrawal during the year – Cumulative deposit during the year – Opening Deposit Balance – last year winnings balance (on which TDS is already deducted) – TDS Exempt amount sitting in winnings balance for last FY – Amount on which TDS is already deducted in current Financial Year.
Further if Net winnings is >0, then TDS = 30% of Net winnings;
If Net Winnings is <=0 then TDS =0
The new TDS policy will come into effect shortly on the MPL platform and we will notify the exact date to you via in-app communications. The TDS cycle will start when the new policy starts and resets at the end of every financial year, i.e. 31 March.
Migration to the new policy:
Once the new policy goes live, the poker wallet balance will be moved to the MPL wallet without any TDS deduction. The non-taxable poker wallet balance will be treated as an opening balance for the new policy.
Example:-
| Poker wallet(before implementation of new TDS policy) | Deposit | Winning |
| Taxable | 0 | 100,000 |
| Non-Taxable | 20,000 | 30,000 |
| MPL wallet (before implementation of new TDS policy) | Deposit | Winning |
| Taxable | 0 | |
| Non-Taxable | 0 | 0 |
| Final MPL Balance After transfer | Deposit | Winning |
| Taxable | 0 | 100,000 |
| Non-Taxable / Already taxed | 20,000 | 30,000 |
(50k will be treated as the opening balance of this user. (20k of deposit balance and 30k of winning balance)
Below is the detailed calculation when the user is trying to withdraw 70k.
| Add | Cumulative withdrawals during the year | 70,000 |
| Minus | Cumulative amount deposited by the User during the year | 0 |
| Minus | Deposit balance at the beginning of the year | 20,000 |
| Minus | Winnings balance at the end of the preceding year, which has suffered TDS in preceding year | 0 |
| Minus | Tax free winnings balance at the end of preceding year | 30,000 |
| Minus | Withdrawals which have suffered TDS during the FY | 0 |
Opening balance = Deposit balance at the beginning of the year (20k) + Winnings balance at the beginning of the year (0) + Tax free winnings balance (30k)
Net winning = 70000-20000-30000 = 20000
TDS = 30%*20000 = 6000