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