Tax on Games

Hi,


Ours is a Online Gaming Company where u can play rummy online.  There are almost 50000 players who play cash games and the process is:


6 Players will play putting 2200 each, so the game value is 13200/-, we take our commission of 12% i.e 1584/-, so the winner gets prize worth 11616/- (which includes his original contribution).  We are deducting TDS on  11616/- @ 30.9%.

Please clarify me in this case:

A player plays different games in a financial year which are less than 10000/- winning amount per game, but the consolidated winnings for the whole year may exceed 10000/- . We are not deducting TDS in these cases as we thought as per Sec 194B, TDS should be deducted considering per game basis when prize amount for a game exceeds 10000/-.

Kindly let me know what actually Act Says, whether we need to TDS as we do in other sections where we consider per person basis, or continue doing the same thing considering per unique game basis.

Replies (2)

Rs.10000 for each individual and one game at a time than you are lible to deduct tds..

Plese go through the below, it says we need to consider per unique game basis, but not per person basis.  Please clarify:

/articles/section-194b-7636.asp

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