Till 31st March, 2023, TDS has been deducted on the user’s winning amount of Rs.10000/- and above. From 1st
April, 2023, new TDS rules have been in place. With reference to the latest TDS Rules effective from 1st April,
2023, the following changes have been made on Mystart11.
• TDS will 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.
• User’s Net Winnings during the financial year April to March will be calculated by considering the
following transactions:
o User’s total winnings
o User’s total deposit
o Amount withdrawn by the user to date
o TDS paid by the user to date
o User’s total outstanding amount in the Winnings as on the last day of the financial year. In this
case, 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.
o
TDS Calculation
• The TDS will be charged on Net Winnings, the formula for which will be:
• 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.
* FY – Financial Year starting from April and ending in March. For example, FY 2023-24 starts on 1st April 2023
and ends on 31st March 2024.
• 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, where D=A+C-B) 300
Amount to be credited to the Bank Account (F = D – E) 700
Case 2: When User’s Net Winnings equal to 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 in 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
Deposit Made in the Current FY (B) 5000
TDS Paid to Date (C) (TDS of Rs.3000 paid on the Net Winnings amount of
Rs.10000) 3000
Withdrawal Made (D) 1000
Net Winnings (E = A+D-B) 1000
Applicable TDS on Net Winnings (when E < Rs.10000) 0
Since Net Winnings upto Rs. 10000 have already been taxed, no TDS will be deducted from the User’s
Net Winnings till it becomes greater than Rs.10000.
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
In this case, the user’s net winnings have reduced from Rs.5000 to Rs.3000. Since the user has already
paid a TDS of Rs.1500, and the applicable TDS on Rs.3000 (new net winnings) is Rs.900. Thus, the user
can claim in the refund of the excess TDS paid while filing the annual income tax.
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 his winnings on 31st March 2023.
Wallet Category Amount (in
Rs)
Withdrawals Made in the Current FY (A) 5000
Deposit Made in the Current FY (B) 5000
TDS Paid till Date (C) (TDS of Rs.3000 paid on the Net Winnings amount of
Rs.10000) 3000
Winnings Balance on 31 March (end of FY) (D) 12000
Here, a TDS has already been paid on the Net Winnings of Rs.10000. Thus, the TDS calculation at the
end of the FY will look like
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) (TDS of Rs 3000 paid on the Net Winnings amount of
Rs.10000) 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 thus carried forward
to the next FY will not be considered for TDS calculation in the new FY