TDS Policy

All Winnings shall be subject to deduction of tax (“TDS”) as per Law. From 1st April, 2023 there will be a change in the TDS policy for all players and calculation of TDS shall be as per the new Regulations. TDS @ 30% shall be deducted from your net winnings at the time of withdrawal.

Net winnings = Total Withdrawals - Total Deposits.

At the end of the financial year, in the event you do not withdraw/partially withdraw your winnings during a financial year and you have a withdrawable Net Winning balance as on 31 March of each year, then net winnings lying in your wallet shall be considered as withdrawal amount and TDS shall be deducted on such amount. The remainder amount lying in your account after deduction of TDS shall be carried forward in the next financial year as opening balance.

You will be required to furnish your Permanent Account Number (PAN) duly issued to you by the income tax authorities if you have not already done so. We neither advise you nor shall in any manner be responsible for your individual tax matters.

Please note that the change in TDS Policy is based on the understanding of the provisions as introduced/ amended by Finance Act, 2023. In the event revisions by the Government of India to the aforementioned TDS rate or the definition of Net Winnings in the future, the Company reserves its right to modify/change/amend the TDS Policy on the basis of the law applicable at the relevant time.

TDS will be triggered:

• At the time of withdrawal throughout the year, or




• At the end of Financial Year i.e. 31st March

Net Winnings will be calculated using the following formula:

In this case, net winnings of a user will be calculated as:

Net Winnings = A - B - C - D, where,

A = Aggregate withdrawals from the user account
B = Aggregate amount deposited in the user account during that period
C = Balance in the user account at the beginning of the financial year
D = Winnings included from earlier withdrawals on which TDS has already been deducted

For easier understanding, please refer to the following examples:

Example 1) TDS DEDUCTION ON 1ST WITHDRAWAL:

A user has a winning wallet balance of ₹2,000 at the beginning of the financial/fiscal year and hasn't deposited any amount in AIO wallet. The user uses the existing balance to participate in fantasy contests and has accumulated winnings of ₹10,000. Now the user requests a withdrawal of ₹4,000, then the user's account has the following details:

Requested withdrawal from the user, A = ₹4,000
The amount deposited in the user account during the year, B = 0
Opening balance in the user account, C = ₹2,000
Winnings from earlier withdrawals on which TDS has been deducted, D = 0

Then, Net Winnings = A - B - C - D
Net Winnings = 4,000 - 0 - 2,000 - 0
Net Winnings = ₹2,000

TDS on this withdrawal will be calculated as follows:
TDS = 30% of Net Winnings
TDS = 0.30 * Net Winnings
TDS = 0.30 * 2,000
TDS = ₹600

Amount credited to Bank Account = Requested Withdrawal Amount (A) - TDS
Amount credited to Bank Account = ₹4,000 - ₹600
Amount credited to Bank Account = ₹3,400

In simpler terms, the user has requested to withdraw ₹4,000 from his/her winnings. After considering the account balance and deposits, the Net Winnings amount to ₹2,000. AIO Games will withhold 30% of the Net Winnings as TDS, which is ₹600 in this case. The final amount credited to the user's registered bank account would be ₹3,400.

Example 2) TDS DEDUCTION ON FOLLOWING WITHDRAWALS:

Let’s say that the same user has deposited ₹2,000 in his in-app wallet. The user now requests another withdrawal of ₹5,000. In this case:

Total withdrawal amount requested, A = ₹4,000 (earlier withdrawal amount) + ₹5,000 (new withdrawal amount)
Total amount deposited by the user, B = ₹2,000
Opening balance of the financial year, C = ₹2,000
Withdrawals on which TDS has been deducted, D = ₹2,000

Then, Net Winnings = A - B - C - D
Net Winnings = (₹4,000 + ₹5,000) - ₹2,000 - ₹2,000 - ₹2,000
Net Winnings = ₹9,000 - ₹6,000
Net Winnings = ₹3,000

TDS on this withdrawal will be calculated in the following manner,

TDS = 30% of Net Winnings
TDS = 0.30 * Net Winnings
TDS = 0.30 * 3,000
TDS = ₹900

Amount credited to Bank Account = Requested Withdrawal Amount - TDS

Amount credited to Bank Account = ₹5,000 - ₹900
Amount credited to Bank Account = ₹4,100

The user has made two withdrawals that sums up to ₹9,000 from his/her winnings during the year. After considering the account balance, deposits and previous withdrawals, user’s Net Winnings amount to ₹3,000. After the TDS deduction, ₹4,100 will be credited to the registered bank account of the user.