TDS deduction on gaming Income U/s 194B

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This discussion clarifies the application of TDS deduction under Section 194B for online gaming companies. The key question is whether the Rs. 10,000 threshold for TDS applies on a per-game basis or as an aggregate of all winnings. The consensus is that TDS liability under Section 194B is determined per contest, not cumulatively across multiple games or winnings.

CA Akshay Somani

CA Akshay Somani (Querist)

27 March 2021 My Company is a online gaming company. So, we need to deduct TDS on the winnings amount exceeding Rs.10,000 u/s 194B. But the question is do we need to deduct TDS of the player according to per game basis or do we need to consider the limit of Rs.10000 aggregately irrespectively of the no. of games played. For e.g. Mr. A played a game conducted in April and won Rs.3000. Further he again played in September & Dec and won Rs.5000 & Rs.8000 respectively. Now do i need to deduct TDS in this case or not ??.
Please reply on this query .
My concern is no. of players play our game every day and keeping track of the aggregate amount of winnings earned by such no. of players will be a difficult task.

Ganeshbabu K

Ganeshbabu K (Expert)

27 March 2021 194B speaks about prize money, TDS liability to be seen per contest, not aggregate.

no TDS required to be deducted even he won crores but single contest less than 10000

CA Akshay Somani

CA Akshay Somani (Querist)

30 March 2021 Thank You Sir for your reply

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