New TDS Rules

TDS will now be deducted on the user’s withdrawal amount and not on the user’s pot winning amount. The withdrawal amount will be subject to 30% TDS, calculated on the user’s net winnings. Thus, the user will get the complete winning amount in the Winnings, and TDS will be deducted only when the user withdraws.

Calculation of User’s Net Winnings

User’s Net Winnings during the financial year (April to March) will be calculated by considering the following transactions:

• User’s total winnings
• User’s total deposit
• Amount withdrawn by the user to date
• TDS paid by the user to date
• User’s total outstanding amount in the Winnings as on the last day of the financial year

The user’s current balance as of 31st March of that Financial Year will be subject to TDS, and the remaining balance will be carried forward to the next Financial Year.

TDS Calculation Formula

The TDS will be charged on Net Winnings, calculated using the following formula:

Net Winnings = Total Withdrawal (Made in the FY including the current withdrawal transaction amount) - Total Deposit (made in the FY) - Opening balance as on 1st April 2023 (Deposit + Winning) - Amount on which TDS has been deducted w.e.f., 1st April 2023.

Illustrations

Case 1: When User’s Net Winnings Are More than Rs.0

Assumption: User’s opening balance on 1st April 2023 is Rs.0, and no TDS has been deducted to date since 1 April 2023.

Wallet Category	Amount (in Rs)
Withdrawals Made in the Current FY (A)	2000
Deposit Made in the Current FY (B)	5000
Current Withdrawal (C)	4000
Net Winnings (D = A+C-B)	1000
TDS to be deducted on (E = 30% of D)	300
Amount to be credited to the Bank Account (F = D - E)	700

Case 2: When User’s Net Winnings Equal Rs.0

Assumption: User’s opening balance on 1st April 2023 is Rs.0, and no TDS has been deducted to date since 1 April 2023.

Wallet Category	Amount (in Rs)
Withdrawals Made in the Current FY (A)	2000
Deposit Made in the Current FY (B)	5000
Current Withdrawal (C)	3000
Net Winnings (D = A+C-B)	0
TDS to be deducted on (E = 30% of D)	0
Amount to be credited to the Bank Account (F = C - E)	3000

Case 3: When TDS Has Been Paid in the FY

Assume the user has already paid a TDS of Rs.3000 on the net winnings of Rs.10000 in the current FY.

Wallet Category	Amount (in Rs)
Withdrawals Made in the Current FY (A)	5000
TDS Paid to Date (C)	5000
Withdrawal Made (D)	3000
Net Winnings (E = A+D-B)	1000
Applicable TDS on Net Winnings (when E < Rs.10000)	0

Case 4: When User’s Net Winnings Have Reduced After TDS Payment

Assume the user has already paid a TDS of Rs.1500 on the Net Winnings of Rs.5000 in the current FY. After paying the TDS of Rs.1500, the user has made a deposit of Rs.2000.

Wallet Category	Amount (in Rs)
Withdrawals Made in the Current FY (A)	10000
Deposit Made in the Current FY (B)	5000
Net Winnings (C = A-B)	5000
TDS Paid (D = 30% of C)	1500
Deposit Made (E)	2000
New Net Winnings (F = C-E)	3000
TDS To be Paid (G)	0

Case 5: When the User Has Balance in the Winnings at the End of the FY

Assume the user has already paid a TDS of Rs.3000 on the net winnings of Rs.10000 in the current FY, and the user has a closing balance of Rs.12000 in their winnings on 31st March 2023.

Wallet Category	Amount (in Rs)
Withdrawals Made in the Current FY (A+D)	17000
Deposit Made in the Current FY (B)	5000
TDS Paid till Date (C)	3000
Net Winnings at the End of FY (E = A+D-B)	12000
Applicable TDS (F = 30% of E)	3600
Actual TDS to be Paid (G = F-C)	600
Amount in Winnings at the End of FY (H = E-G)	11400

Thus, the amount of Rs.11400 will be carried forward to the next FY. The amount carried forward to the next FY will not be considered for TDS calculation in the new FY.