FREQUENTLY ASKED QUESTION

Yes, the paid version of Online Fantasy Sports Gaming Games is legal in India as it is considered to be a legal game of skills.

MyTeam11 does not allow any individual below the age of 18 to participate or use services and offers provided by MyTeam11.

According to the new section 194BA of the Income-tax Act, 1961, starting from 1st April 2023, a 30% withholding tax (‘TDS’) will be applied to the positive 'Net Winnings' earned by users from online games on MyTeam11.

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 MyTeam11 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. MyTeam11 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.

For TDS at the year end:

Example 1) TDS DEDUCTION ON LAST DAY OF THE YEAR:

Let’s say the same user mentioned in the above examples has ₹10,000 winning amount left in MyTeam11 wallet by the end of financial year (i.e. 31st March) against the deposit of ₹5,000. Since, no TDS deduction has been done on these winnings, in such a case, MyTeam11 will automatically deduct a 30% TDS in the following manner: (and will be reflected in MyTeam11 wallet)

Total withdrawal amount, A = ₹9,000
Total amount deposited by the user, B = ₹2,000 + ₹5,000 = ₹7,000
Opening balance of the winning wallet at the beginning of the financial year, C = ₹2,000
Winnings from earlier withdrawals on which TDS has been deducted, D = ₹2,000 + ₹3,000 = ₹5,000
Closing Balance in the winning wallet at the end of the financial year, E = ₹10,000

Then, Net Winnings = E + A - B - C - D
Net Winnings = (₹10,000 + ₹9,000) - ₹7,000 - ₹2,000 - ₹5,000
Net Winnings = ₹19,000 - ₹14,000
Net Winnings = ₹5,000

TDS on this withdrawal will be calculated in the following manner,
TDS = 30% of Net Winnings
TDS = 0.30 * Net Winnings
TDS = 0.30 * 5,000
TDS = ₹1,500

New Wallet Balance = Winnings on which no TDS has been deducted - TDS
New Wallet Balance = ₹10,000 - ₹1,500
New Wallet Balance = ₹8,500

NOTE: This new wallet balance is the closing balance of the year which will automatically become the opening balance of the following financial year.

EXAMPLE 2) TDS DEDUCTION IF THE USER MAKES NO WITHDRAWAL THROUGHOUT THE YEAR:

In a scenario where a user with an opening balance of ₹3,000 has participated in skill-based contests throughout the year and won ₹15,000, deposited ₹5,000 in the wallet but has not made any withdrawal, in such case, Net Winnings and TDS deduction will be calculated in the following manner:

Net Winnings = E + A - B - C - D, where,
Total withdrawal amount, A = ₹0, as user hasn’t made any withdrawal request
Total amount deposited by the user, B = ₹5,000
Opening balance of the winning wallet at the beginning of the financial year, C = ₹3,000
Winnings from earlier withdrawals on which TDS has already been deducted, D = ₹0, as no withdrawal has been made
Closing Balance in the winnings wallet at the end of the financial year, E = ₹15,000

Net Winnings = E + A - B - C - D
Net Winnings = ₹15,000 + 0 - ₹5,000 - ₹3,000 - 0
Net Winnings = ₹15,000 - ₹8,000
Net Winnings = ₹7,000

TDS = 30% of Net Winnings
TDS =0.30 * Net Winnings
TDS = 0.30 * 7,000
TDS = ₹2,100

New Wallet Balance = Balance in the user account at the end of the financial year - TDS
New Wallet Balance = ₹15,000 - ₹2,100
New Wallet Balance = ₹12,900

This new wallet balance is the closing balance of the year which will automatically become the opening balance of the following financial year.

• The amount credited to the user's registered bank account or MyTeam11 Wallet (in case of a change in the financial year) will be the remaining amount after the TDS deduction, as per the new tax policy.

• In case of such tax deductions, the winners will be provided TDS certificates.

• In compliance with section 269SU of the Income Tax Act, we insist on making payments by NEFT/RTGS/IMPS or any other E Modes.

• The individuals declared as winners by MyTeam11 agree to pay any applicable taxes, including (but not limited to) income tax, gift tax, etc., in compliance with the new tax policy. Both winnings and MyTeam11 Credits are subject to various taxes.

Note: As MyTeam11 Credits/Cash Bonuses are promotional incentives provided to the users, they are exempted from TDS deduction.