The new Govt, Tax (TDS) law, as defined in the Finance Act, 2023, has been in effect since 1 April 2023. According to the law, 30% of your taxable amount (i.e. net winnings) is deducted as TDS on withdrawal.
In case of no withdrawal in the entire financial year, TDS will be deducted on net winnings as on 31 March 2024.
It's important to understand how the taxable amount (i.e. net winnings) are calculated.
Until 30 April 2023, the taxable amount was calculated as:
Net winnings* = Total winnings - (Total Entry Amount- Cash Bonus/Discount)
(*subject to change as per the rules that are to be notified under the Income Tax 1961)
We've now made a quick update on how the taxable amount is calculated to make it simpler for you.
The taxable amount is defined as the difference between your withdrawals and deposits in the FY.
From 1 May 2023, the taxable amount is calculated as below:
Please check this link for detailed examples, which will help you get more clarity on this.
You can also refer to this Times Of India article to get a simplified version of these TDS changes.