TDS Explanation and Refund Policy

Please watch the video for detailed explanation :

Q. What is the TDS refund?

MPL is offering a fantastic deal to all gaming enthusiasts. By making a minimum deposit of just 1 Rs, you can take advantage of a TDS refund of up to 1000 Rs. Due to updates in central tax laws, 30% TDS tax is deducted on net winnings from 01 Apr’23, but you need not worry as the refund will be credited to your MPL deposit wallet after a successful withdrawal*. If you find this offer appealing, please like and share it with your friends. Enjoy gaming and have a great time! *T&C Apply

Q. I have made a successful withdrawal but did not receive any cashback.

To activate the offer, you need to download latest MPL Pro APP and make a successful deposit of min Rs 1. The offer will get activated for the next 30 days.

For android download the latest App from here.
For IOS download the latest App from here.

On your next 5 successful withdrawals, if any TDS gets deducted, the same will be credited as a refund to your deposit cash.

TDS Refund Scenario

Withdrawal NoIntended WithdrawalActual WithdrawalNet winningsTDS (Govt Tax Deduction) @30%Instant TDS Refund
1500500400120120
210001000800240240
3800800500150150
4120012001200360360
5900790800240130
Total44004290370011101000

Q. I am unable to see the TDS refund received

The TDS refund will be added to your deposit wallet.

You can see the refund credit in your transaction history section.

Q. What is the TDS policy?

The policy:

From 1st April’23, the Income tax department has introduced a new TDS section for Winnings from online games, i.e., 194BA. The net winnings are calculated at the time when a user places a request for withdrawal (or at the year-end on the closing balance), and TDS is calculated as 30% of the net winnings that constitute the Withdrawal/ Closing Balance at the year-end.

Important points:

  • The TDS will be deducted at the time of withdrawal.
  • The TDS will be applicable only on net winnings that constitute withdrawals and not deposits.
  • Your deposit and withdrawal ledger will become zero at 00:00 hours on the 1st of April in each financial year.
  • Net winnings = [Total withdrawals in FY – (Total deposits in FY + Net winnings which have suffered TDS during the FY + Opening balances )]

Q. How is TDS calculated on MPL?

  • The TDS will be deducted at the time of withdrawal and at the year end.
    • The Financial year is 1st April – 31st March.
  • 30% TDS will be applicable if the net winnings of a player are positive. (greater than zero).

Your deposit and withdrawal ledger will become zero at 00:00 hours on the 1st of April in each financial year.

Your net winnings are calculated as follows:
Net winnings = [Total withdrawals in FY – (Total deposits in FY + Net winnings which have already suffered TDS during the FY + Opening balances as of 1st April 00:00)]

If your net winnings at the time of making a withdrawal are positive, 30% TDS will be applicable on any amount being withdrawn.

Let us understand this further with some examples:

Scenario 1:

On 1st April, you have 7000/- in your winnings balance and 8000/- in your deposit balance. Now you try to withdraw 7000/- on 2nd April. No TDS will be applied.

Total withdrawals in FY₹7,000
Total deposits in FY₹0
Opening deposit balance₹8,000
Net winnings₹- 1000
Net winnings on which TDS has been paid₹0
TDS@30% on net winnings₹0

Scenario 2

  • Now consider that you deposit 3000 in the current financial year and your opening deposit balance is 8000.
  • You have already withdrawn 7000.
  • Now you want to withdraw 5000
Total withdrawals in FY₹7,000 + ₹5,000 = 12,000
Total deposits in FY₹3,000
Opening deposit balance₹8,000
Net winnings₹1,000
Net winnings on which TDS has been paid₹0
TDS@30% on net winnings₹300

The Amount that you can withdraw without tax is ₹4000. Tax will be applicable on the remaining ₹1,000. ₹300 will be deducted from ₹1000 and ₹4700 will be added to your bank account.

Scenario 3

If TDS has been applied to your previous withdrawals, then no TDS is applicable on withdrawals untill your net winnings exceed the amount for which you have already paid TDS.

  • Your total withdrawals till date is ₹20,000
  • Your total deposits in FY is ₹6,000
  • Opening deposit balance is ₹8,000

Net winnings on which TDS is paid is ₹6000 (20,000 – (6000 + 8000)).

If you try to withdraw ₹5,500, no TDS will be deducted. You can withdraw upto ₹6,000 without any TDS.

If you wish to withdraw ₹10,000, TDS will be charged on ₹4,000 @30%. ₹1,200 will be deducted and ₹8,800 will be added to your bank account

Q. Does MPL deduct any TDS on my withdrawals?

From 1st April’23, the Income tax department has introduced a new TDS section for Winnings from online games, i.e., 194BA. The net winnings are calculated at the time when a user places a request for withdrawal (or at the year-end on the closing balance), and TDS is calculated @30% on the net winnings comprised in withdrawal/ Closing Balance at year end.

Read more about the policy here.

Q. Will TDS be deducted from my leaderboard winnings?

All winnings from the leaderboard will be added to the winnings wallet without deducting TDS. It will be deducted once you initiate a withdrawal based on your net winnings.

Q. My TDS has been deducted. Do I get any TDS certificate for the same?

MPL deducts TDS and deposits the same with the Government. If you have given MPL your correct PAN number, you can view your TDS deduction details in your 26AS (updated after every quarter). Certificates are also available in the Download section (to put the path from where the user can download from 16 from the app).

Q. Will the ledger reset on the 1st of April of every new Financial Year?

Yes, All deposits and withdrawals will be reset to 0 at 00:00 hrs on 31st March for the purpose of computation of Net Winnings.

Q. What will happen to the money in my poker wallet?

The amount from your Poker wallet will be moved to the MPL wallet without deducting tax. You can read more about it here: MPL Poker TDS Policy

Q. What if I end up paying extra TDS?

This can happen in case of a withdrawal being made when net winnings were positive and by the year-end, the user is in net losses. At the end of the financial year 00:00 hrs on 31st March, your final TDS will be calculated depending on the financial year’s net winnings.

Further, since the winnings earned from Online Gaming are taxable at 30%. Users need to file their ITR, and the total TDS deducted can be adjusted against the Winnings liable for tax. If any excess TDS is deducted, the same can be claimed while filing ITR.

Q. Is there any threshold amount above which TDS is applicable?

There is no threshold limit available u/s 194BA of the Income Tax Act, 1961. TDS is applicable whenever a withdrawal request is placed and Net winnings are positive.