TDS Calculation

TDS Explanation for CBG Users

Q. Why is TDS deducted on March 31st?

At the end of each financial year, on March 31st, a 30% TDS (Tax Deducted at Source) is applied to any net winnings remaining in your CBG wallet. This is mandated by the Government of India in accordance with Section 194BA of the Income Tax Act, which applies to online gaming platforms.

Q. Do I need to pay TDS again on the balance left in my wallet after March 31st?

No. Once TDS is deducted on your net winnings at the close of the financial year, you won’t be taxed again on the remaining amount. Your remaining wallet balance (usable + withdrawable) becomes the opening balance for the next financial year.

Q. What happens to the TDS deducted on March 31st?

The amount deducted is reported to the Income Tax Department and will reflect in your Form 26AS if your PAN is linked. A TDS certificate will also be made available from CBG's app for your records.

Q. What is the TDS policy on CBG?

As per Section 194BA, effective from 1st April 2023, TDS is applicable on:

 - Withdrawals made during the financial year

 - Closing net winnings left in the wallet at year-end

TDS is calculated at 30% of net winnings, which is:

Net winnings = [Total withdrawals – (Total deposits + Net winnings already taxed + Opening balance)]

If your net winnings > 0, 30% TDS will be applied on the portion of the withdrawal or balance that is from winnings.

Important points:

 - TDS is only applicable on winnings, not on deposits.

 - TDS will be deducted at the time of withdrawal or at financial year-end.

 - On 1st April, your deposit and withdrawal records are reset to zero for the new financial year.

Example Scenarios

Scenario 1: No TDS on withdrawal

 - Opening deposit: ₹8,000

 - Opening winnings: ₹7,000

 - You withdraw ₹7,000 on April 2nd

 - No new deposit this year

 - Net winnings = ₹7,000 - ₹8,000 = -₹1,000

 - No TDS applicable

Scenario 2: Already paid TDS

 - Total deposits: ₹6,000

 - Opening deposit: ₹8,000

 - Total withdrawals: ₹20,000

 - Net winnings taxed previously: ₹6,000

 - If you withdraw ₹5,500, no TDS (already paid on winnings)

 - If you withdraw ₹10,000, TDS applies on ₹4,000 → ₹1,200 deducted

Q. Does CBG deduct TDS on every withdrawal?

Yes, if your net winnings are positive at the time of withdrawal. TDS is deducted under Section 194BA at 30% on the net winnings portion of your withdrawal.

Q. Will leaderboard or bonus winnings have TDS deducted?

Leaderboard or promotional winnings will be credited in full to your winnings wallet. TDS will only be deducted when you withdraw if your net winnings are positive.

Q. Do I receive a TDS certificate?

Yes. CBG deposits TDS with the government. If your PAN is updated, the TDS will appear in your Form 26AS. You can also download your Form 16 certificate from within the app (navigate to: Profile > Reports > TDS Certificates).

Q. Will my ledger reset every year?

Yes. On April 1st at 00:00 hours, your deposit and withdrawal ledgers are reset to zero to start the new financial year.

Q. What if I paid excess TDS during the year?

If TDS is deducted during a withdrawal when your net winnings are positive, but you end the year in a loss, this excess TDS can be claimed back when you file your Income Tax Return (ITR).

Q. Is there a minimum threshold for TDS deduction?

No. As per Section 194BA, there is no threshold limit. TDS is applicable whenever your net winnings are positive and you withdraw or at year-end if winnings remain.