Applicable TDS New Update

What’s new?

The new TDS (Tax Deducted at Source) law, implemented by the government, will come into effect from April 1, 2023 As per the law, TDS will be deducted at 30% of your net winnings during the time of withdrawal

Net Winnings

It is the difference between your gains/profits and spends

Net winnings* =

Total winnings - (Total Entry - CB/Discount)

*subject to change as per the rules notified under the Income Tax 1961

How are tax deductions made?

At the time of withdrawal 30% tax as TDS will be deducted on net winnings. In the event of no withdrawal made during the financial year, TDS will be deducted from net winnings as on March 31, 2024

Note : 30% of withdrawal amount will be the Maximum TDS. For Instance:

Nikhil competes in a contest worth ₹100, availing a ₹50 discount, and wins ₹200

Winnings:

₹200

Net Winnings: ₹200-(₹100-50) =

₹150

Case 1: Entire Withdrawal of ₹200

Since, the current TDS Liability (30% of net winnings)< 30% of the withdrawal amount

Net Winnings: ₹200-(₹100-50) =

₹150

Net Winnings: ₹200-(₹100-50) =

₹150

Case 2: Partial Withdrawal. 1st withdrawal of ₹100

Since 30% of withdrawal amount < The current TDS Liability (30% of net winnings)

Applicable TDS:

30% of ₹100= ₹30

After TDS Withdrawal=

₹70

Second Withdrawal of ₹100

TDS Paid (till date)=

₹30

Current TDS Liability 30% of ₹150 net winnings - TDS paid (till date) =

₹15

Since, Current TDS Liability < 30% of withdrawal amount

Applicable TDS:

30% of ₹150 - ₹30 = ₹15

After TDS Withdrawal =

₹85

Frequently Asked Questions

If you do not make any withdrawals during the financial year, the net winnings at the end of the year will be subject to a 30% Government Tax (TDS) deduction.
Your account balance held before 1 April 2023 will not be affected by this new update.
There is no threshold amount for the Government Tax (TDS) deduction, as it will be applicable on net winnings from each withdrawal or at the end of the financial year.
In case of net losses, the Government Tax (TDS) will not be applicable.
If you end up paying extra Government Tax (TDS), you can claim a refund by filing your Income Tax Returns (ITR) for that financial year and downloading your Govt. Tax (TDS) certificates from the My Transactions section of the app at the end of each quarter.

Yes. TDS will be deducted at 30% of your taxable amount at the time of withdrawal, according to the new Government Tax (TDS) law, which goes into effect on April 1, 2023.


The difference between your withdrawals and deposits is the taxable amount. This is how it is calculated:
Amount Taxable (Net Winnings) = A - B - C - D
A = Total withdrawals (including current withdrawal amount)
B = Total deposits
C = Opening balance at the start of the fiscal year
D = Amount on which TDS has been deducted till date