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.
